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EMEA IT Infrastructure Spending Grew 37.4 Percent in 2Q 2016

Industry News from Cloud IT

EMEA IT Infrastructure Spending Grew 37.4 Percent in 2Q 2016

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October 13, 2016
By Casey Houser
Contributing Writer

Information technology market analysis company International Data Corporation (IDC (News - Alert)) recently released its “WW Quarterly Cloud Infrastructure Tracker” report, which revealed a significant increase in spending on IT infrastructure in the Europe, Middle East and Africa (EMEA) region.


Spending on servers, disk storage, and Ethernet switches, IDC found, increased 37.4 percent in the second quarter of 2016 compared with the same quarter last year. This increase has lifted the total spending in the market at $1.56 billion in the quarter. It appears that the Brexit vote in Great Britain has not had a negative impact on spending and that deployments of public and private clouds are on the rise.

Kamil Gregor, a research analyst of European infrastructure at IDC, also noted that his research firm predicts a continued rise of this market through 2020.

“IDC expects this market to reach a value of EUR10.5 billion (US $11.6 billion in current exchange) by 2020,” Gregor began.

“Fueled by increasing maturity and adoption rates of many new cloud-dependent technologies, such as the Internet of Things, cloud continues to represent an area of tremendous growth for the European infrastructure sector,” he continued.

Gregor further noted that 2Q 2016 was the “first proper post-Brexit quarter” and that the vote did not make a strong impact on the manner in which companies invested in IT. Cloud computing vendors noted that they saw a brief disruption in the market immediately following the vote; however, they also saw a quick rebound to the status quo.

Meanwhile, multicloud adoption has gained favor in Western Europe because of the differences in state and international regulations placed on those countries. The coming EU General Data Protection Regulation legislation, which is scheduled to take effect in May 2018, will place a burden on many EU-bound companies to better manage customer data in ways such as deleting personal data in a timely manner. Businesses that reside in Western Europe may find themselves somewhat removed from the effects of that legislation, IDC reported, so the law’s passage will likely not affect multicloud use.

In comparison, Central and Easter Europe, the Middle East and Africa are expected to continue to invest in both public and private clouds. The use of private clouds, in particular, is helping companies consolidate their infrastructure and make it easier to access applications and company networks from multiple locations.




Edited by Alicia Young

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