Data Center Spending in 2020

According to a recent report from Synergy Research, 2020 Cloud spending took off, growing by 35% in 2020, reaching nearly $130 billion, while Enterprise spending on Data Center hardware and software dropped by 6% to just under $90 million. In 2019 both Cloud spending and Enterprise Data Center spending were nearly equal.

Because of the tightening of all resources, including cash, spending for Enterprise Data Centers has stalled this year, declining by 10%. For most Enterprise facilities, the priority for 2020 has basically been to keep the lights on. This year, these Enterprise Data Centers are expected to have the cash to resume growth and expansion, thereby boosting the market.  Any good news on the spending front in 2020 has been shored up by public cloud and hyperscale investments to meet evolving demands.

The report goes on to say that 60% of the servers sold are going into cloud providers’ data centers, not Enterprise Data Centers.  However, Synergy Research does is not predicting a huge reduction in spending over the next five years..

You can read more details on the report at Fierce Telecom.