Originally posted on Data Center POST
Philbert (“Phil”) Shih, Managing Director of Structure Research opened the infra/STRUCTURE Summit 2024 in Las Vegas with a presentation on the state of the managed infrastructure sector. Here are the top six takeaways from the data he shared at the event.
- Public Cloud Growth and Deceleration
While public cloud remains a dominant force in the infrastructure market, its growth has slightly decelerated. The public cloud sector is now expected to account for two-thirds of the market by 2029, down from earlier estimates of 75%. This slowdown reflects a shift in market dynamics, but public cloud remains a critical growth area, especially as enterprises continue to migrate workloads.
- Rise of GPU Cloud and AI Infrastructure
The introduction of GPU cloud as a new category in Shih’s managed infrastructure research underscores the growing importance of AI and high-performance computing (HPC). GPU cloud is projected to grow from 1% of the market today to 10–11% by 2029, driven by demand for AI model training and inferencing. This category will be vital for companies looking to support AI workloads, with companies like Cloudflare expanding their GPU infrastructure rapidly.
- Managed Infrastructure and Managed Public Cloud as Key Growth Drivers
Managed infrastructure continues to grow at a 14.1% CAGR over the next five years. A significant part of this growth is driven by managed public cloud, where service providers are layering value-added services on top of raw cloud infrastructure. Managed public cloud services are expected to grow at around 25.9% CAGR, reflecting increased adoption by enterprises that need managed services to optimize their cloud usage and overcome skill shortages.
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