Data centre market loses out as more firms choose cloud

Data centre market loses out as more firms choose cloud [Image: Maxiphoto via iStock]

The rise in cloud computing has seen the popularity of traditional data centres around the world wane, according to research firm Gartner.

Gartner’s Worldwide IT Spending Forecast has predicted that the worldwide data centre system segment is expected to grow by just 0.3 per cent in 2017, reflecting a slowing down of the market, despite it being an increase from the fall in spending seen in 2016.

John-David Lovelock, research vice-president at Gartner, said: “We are seeing a shift in who is buying servers and who they are buying them from.

“Enterprises are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft. This has created a reduction in spending on servers, which is impacting the overall data centre system segment.”

In 2016, global businesses spent a total of $171 billion (£132 billion) on data centre systems, which represented a fall of 0.1 per cent. It was just a fraction of overall IT spending, which amounted to $3.4 trillion. Next year is expected to see worldwide spending on data centres of $173 billion, reflecting growth of 1.2 per cent.

Meanwhile, the strength of mobile phone sales and smaller improvements in the sales of printers, PCs and tablets, is expected to see worldwide spending on devices to grow 1.7 per cent in 2017, to reach $645 billion. This is up from a fall of 2.6 per cent in 2016.

According to Gartner, the worldwide IT services market is forecast to grow by 2.3 per cent in 2017, down from 3.6 per cent growth in 2016. In 2016, $897 billion was spent, while $917 billion is forecast to be spent this year.