AI infrastructure spending to surpass the US $ 100bn mark ‘ in the next five years ’
HCLTech completes acquisition of Communications Technology Group assets from Hewlett Packard Enterprise
NEWS
AI infrastructure spending to surpass the US $ 100bn mark ‘ in the next five years ’
The global AI infrastructure market is on track for unprecedented growth , poised to surpass $ 100 billion USD in spending by 2028 , according to the latest findings from the International Data Corporation ( IDC ) Worldwide Semiannual Artificial Intelligence Infrastructure Tracker .
Organizations increased spending on compute and storage hardware infrastructure for AI deployments by 37 % year-over-year in the first half of 2024 , reaching $ 31.8 billion .
The AI infrastructure market has now sustained double-digit growth for nine consecutive half-years , driven primarily by investment in servers for AI deployments .
The United States leads the global AI infrastructure market , accounting for almost
half of the total spending in 1H24 , followed by PRC ( 23 %), APJ ( 16 %), and EMEA ( 10 %). Over the next five years , IDC expects the APJ region to grow at the fastest CAGR ( 20 %) followed by the USA ( 16 %), EMEA ( 13 %) and PRC ( 11 %).
By 2028 , IDC forecast AI Infrastructure spending to reach $ 107Bn with servers deployed in cloud environments at 75 % of the market total and accelerated servers around 56 % of the total market spending .
“ IDC expects AI adoption to continue growing at a remarkable pace as hyperscalers , CSPs , private companies , and governments around the world are increasingly prioritizing AI . Growing concerns around energy consumption for AI infrastructure will become a factor in datacenters looking for alternatives to optimize their architectures and minimize energy use ,” said Lidice Fernandez , Group Vice President , Worldwide Enterprise Infrastructure Trackers .
HCLTech completes acquisition of Communications Technology Group assets from Hewlett Packard Enterprise
HCLTech has completed the purchase of certain assets from Hewlett Packard Enterprise ’ s ( HPE ) Communications Technology Group ( CTG ).
The closure formally expands HCLTech ’ s longstanding partnership with HPE , extending its leadership in the telecom services markets and strengthening its engineering services capabilities with industry-leading intellectual property ( IP ), engineering and R & D talent and client relationships with top global Communication Service Providers ( CSPs ).
Key highlights include :
• Gained a portfolio of service offerings that includes industryleading IP , solutions and systems integration across Business Support Systems ( BSS ), network applications , service cloudification and data intelligence .
• Strengthened the CSP domain practice by integrating over 1,500 product engineering specialists from CTG , supporting CSPs ’ agile methodologies and nearshore delivery needs across countries including China , Japan , Spain , Romania , Italy , India and LATAM .
• Expanded global presence in the CSP market across North America , LATAM , Europe and Asia Pacific .
• Established direct relationships with global CSPs , including 20 of the top 30 , accelerating the growth strategy in the global telecom industry .
Anil Ganjoo , Chief Growth Officer , TMT industries , HCLTech , said : “ By combining our engineering strengths with CTG ’ s advanced capabilities , we will enhance our partnerships with leading global CSPs , accelerate the growth of our digital services and expand our global footprint .”
Marie Myers , Executive Vice President and Chief Financial Officer , HPE , said : “ Now that the HCLTech acquisition is complete , we look forward to CTG ’ s successes being nurtured and grown as part of HCLTech as well as in continuing our HPE commitment to the telecoms market .”
8 INTELLIGENTCIO NORTH AMERICA www . intelligentcio . com