Cloud IT Infrastructure Tracker, vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, increased 2.2% in the first quarter of 2020 (1Q20) while investments in traditional, non-cloud, infrastructure plunged 16.3% year over year.
International Data Corporation (IDC) in its global quarterly report said the broadening impact of the COVID-19 pandemic was the major factor driving infrastructure spending in the first quarter.
Widespread lockdowns across the world and staged reopening of economies triggered increased demand for cloud-based consumer and business services driving additional demand for server, storage, and networking infrastructure utilized by cloud service provider datacenters.
As a result, public cloud was the only deployment segment escaping yearly declines in 1Q20 reaching $10.1 billion in spend on IT infrastructure at 6.4% year-over-year growth. Spending on private cloud infrastructure declined 6.3% year over year in 1Q to $4.4 billion.