Spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, climbed 115.3% year over year to $57.3 billion in the third quarter of 2024, according to the International Data Corporation's (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment.

Cloud infrastructure spending is still outpacing non-cloud spending, which increased 28.6% to $19.6 billion in 3Q24. As a result of ASPs (application service providers) continuing to rise, mostly owing to the exponential growth in GPU server sales, the cloud infrastructure sector had a lower growth in unit demand of 15.6%.

According to IDC's lon-term prediction, cloud infrastructure investment would expand at a compound annual growth rate (CAGR) of 24.2% between 2023 and 2028, hitting $325.5 billion in 2028 and making up 78.8% of all compute and storage infrastructure spending. In 2028, investment on shared cloud infrastructure will make up 79.1% of all cloud spending, increasing at a 25.2% CAGR to $257.4 billion. At a compound annual growth rate (CAGR) of 20.7%, dedicated cloud infrastructure spending will reach $68.2 billion. Additionally, non-cloud infrastructure spending is expected to increase at a 7.6% CAGR, reaching $87.5 billion by 2028. It is anticipated that service providers would spend $233.0 billion on compute and storage infrastructure by 2028, growing at a 17.1% CAGR.

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