Analyst firm IDC reveals an increase in worldwide spending on on-premises storage hardware. Investments in cloud computing storage grew even faster. The trend is driven by a demand for databases.
One of the biggest concerns of tech companies is effectively managing and securing their data. In its latest Worldwide Semiannual Enterprise Infrastructure Tracker, the International Data Corporation (IDC) found that around $6.3 billion of storage hardware was sold to enterprises in the first half of 2022.
Moreover, IDC indicates that around $14.1 billion was spent across the entire data management industry in 2022. The industry comprises hardware and software for AI lifecycle management, business intelligence, analytics and database management.
Furthermore, hardware spending is increasing in the areas of collaborative and email apps, infrastructure and business applications. IDC says that by the end of 2022, over $140 billion will have been spent on enterprise servers and storage. The company predicts this will grow to nearly $200 billion by 2026.
‘Cloud will outpace on-prem’
Data management is one of the fastest-growing branches of the IT industry. Traditional IT companies and cloud computing providers are investing heavily in advanced hardware for data storage and management. IDC indicates that spending on cloud data management is growing even faster than traditional IT setups as many enterprises are shifting to cloud computing.
Companies like Dell, HPE, and Lenovo sell vast amounts of hardware to hyperscalers. It’s believed that cloud database growth will outpace on-prem hardware purchasing. According to IDC, cloud purchasing will move at an annual compound growth rate of 14.8 percent, while on-prem spending moves at 6.2 percent.