Cloud Infrastructure Spending Continued To Grow In 2Q23
StorageNewsletter.com, Tuesday, October 10,2023
According to the IDC's Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 7.9% Y/Y in 2Q23 to $24.6 billion.
Spending on cloud infrastructure continues to outgrow the non-cloud segment with the latter declining 8.3% in 2Q23 to $14.4 billion. The cloud infrastructure segment experienced a decline of 23.2% in unit demand with an increase in ASPs, mostly related to higher than usual GPU server shipments to hyperscalers.
'Cloud infrastructure spending is shifting towards robust configurations geared towards more complex workloads and new AI initiatives,' said Juan Pablo Seminara, research director with IDC's Worldwide Enterprise Infrastructure Tracker. 'Despite the steep decline in system unit demand for the first half of the year, the spending outlook for 2023 remains positive with growth centered on the expectation that higher ASPs will remain for the rest of the year.'