Cloud computing sustains to take a bite out of the data center market, as latest projections from Gartner Inc. indicate barely any spending growth for the year.
Worldwide IT (information technology) spending on the data center system segment is anticipated to grow by only 0.3% this year, Gartner says. Despite that low number, it is better news that previous year, which actually saw negative growth.
“We’re seeing a shift in who is purchasing servers and who they are buying them from,” elaborated John-David Lovelock, research vice president at Gartner. “Enterprises are shifting away from buying servers from the traditional vendors and instead renting server power in the cloud computing from companies like Amazon, Google and Microsoft. This has developed a reduction in spending on servers which is affecting the overall data center system segment.”
Of the 5 spending areas studied by Gartner, only communication services had a lower projection for 2017 year, at negative 0.3% growth. Spending on devices is projected to see a 1.7% increase and enterprise software is hoped to lead at a 5.5% increase.
Worldwide IT spending is projected to total $3.5 trillion in the year of 2017, which reflects a 1.4% increase from 2016, in accordance to Gartner. Heading into 2017 Gartner had originally projected a 2.7% spending increase. The research firm adjusted its projection down because of the rising significance of the U.S. dollar against foreign currencies.
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