Increasingly, companies have been looking to shift from non-cloud IT infrastructure to cloud-based solutions, and have allocated higher monetary resources to cloud-based IT infrastructure products such as compute and storage infrastructure. In fact, as reported by the International Data Corporation (IDC), Q1 of 2022 marked the first time that companies are now spending more money on their cloud-based compute and storage infrastructure than they are on their non-cloud-based IT infrastructure.

According to the IDC:

• There was a 17.2% year-over-year increase in spending on cloud-based compute and storage infrastructure for Q1 of 2022.
• The IDC is forecasting an overall increase of 22% in cloud-based compute and storage infrastructure spending for 2022 compared to 2021. The IDC further bifurcates this number into shared cloud infrastructure (24.3% forecasted year-over-year growth for the full year) and dedicated cloud infrastructure (16.8% forecasted year-over-year growth for the full year).
• Global events may impact regional growth and overall growth. For instance, the IDC notes that global inflation has an impact on overall spending, and although forecasts show an overall increase in cloud spending, that increase may not be as substantial or may even be an overall decrease in certain regions due to factors such as the conflict in Ukraine.

For further information on which regions are forecasted to see the highest growth or decline as well as IT infrastructure spending data points, check out the IDC’s press release.