IDC: Cloud deployment spending up nearly 25% YOY in Q3

Spending on compute and storage infrastructure for cloud deployments was up nearly 25% year-over-year in the third quarter of 2022 and reached $23.9 billion, according to new numbers from IDC.

The analyst firm said that non-cloud computing infrastructure spending also saw strong year-over-year growth at 16.5% for a market size of $16.8 billion—but cloud definitely has the numbers advantage.

“The market continues to benefit from high demand and large backlogs, coupled with an improving infrastructure supply chain,” IDC said in a release.

IDC broke the market into two segments: Shared cloud services, which it defined as cloud services that are generally available to various enterprises and consumers and designed for a market, not a specific business; and dedicated cloud infrastructure, which supports cloud services that are shared within/across an enterprise with restrictions on access and which are controlled by the enterprise.

Dedicated cloud infrastructure spending was up 25.3% in the third quarter of 2022, to $7.1 billion. Within the dedicated cloud infrastructure segment, 45.2% was deployed on-premise, IDC added.

The company also said that service providers as a group (including cloud service providers, digital service providers, communications service providers and managed service providers) spent about $23.9 billion on compute and storage infrastructure during the third quarter, up 22.5% from the prior year, and accounted for 58.7% of the market.

IDC expects full-year cloud infrastructure spending for 2022 to end up with year-over-year growth of 19.6% to $88.1 billion, compared to an 8.6% increase in spending from 2020 to 2021.

For the service provider segment, IDC expects that their full-year cloud spending will total $87.8 billion for 2022, up 17.5% from the year before. On a regional basis, the Middle East and Africa, the United States and Western Europe grew the most, IDC added.