Spending on computing and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 24.7% year over year in Q3 22 to $23.9 billion.
This is according to recent International Data Corporation (IDC) report.
According to the report, spending on cloud infrastructure outgrew the non-cloud segment although the latter had strong growth in Q322 as well, increasing at 16.5% YoY to $16.8 billion as the market continues to benefit from high demand and large backlogs, coupled with an improving infrastructure supply chain.
Spending on shared cloud infrastructure reached $16.8 billion in the quarter, increasing 24.4% compared to a year ago, while the dedicated cloud infrastructure segment grew 25.3% year over year in 3Q22 to $7.1 billion.
On a geographic basis, year-over-year spending on cloud infrastructure in Q3 22 increased in all regions except Central and Eastern Europe (CEE), which is impacted by the Russia-Ukraine war. Spending in CEE declined 35.1% year over year in the quarter.
The Middle East and Africa (MEA), the United States, and Western Europe grew the most at 65.8%, 32.1%, and 31.3% year over year, respectively. All other regions demonstrated growth in the teens and twenties percentage range.
The service provider category includes cloud service providers, digital service providers, communications service providers, and managed service providers.
In Q3 22, service providers as a group spent $23.9 billion on compute and storage infrastructure, up 22.5% from the prior year. This spending accounted for 58.7% of the total market while non-service providers increased their spending at a similarly high rate, 19.3% year over year.
In the long-term outlook for the year 2022, IDC analysts expect spending on cloud infrastructure to have a compound annual growth rate (CAGR) of 12.9% over the 2021-2026 forecast period, reaching $135.1 billion in 2026 and accounting for 67.3% of total compute and storage infrastructure spend.