Data centre systems spending to fall in 2020: Gartner

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Data centre systems spending to fall in 2020: Gartner

Global IT spending growth is starting to slow, with data centre systems spending actually expected to fall in 2020, according to market research firm Gartner.

Gartner expects overall IT spending to grow in 2019 by 3.2 percent to reach US$3.77 trillion, with growth in 2020 to fall slightly to 2.8 percent to reach $3.88 trillion. Gartner estimated 2018 spending grew 3.9 percent over 2017.

However, the firm reported, data center systems spending, which it estimated rose 11.3 percent in 2018 over 2017, will grow only 4.2 percent in 2019 and will actually shrink 3.9 percent in 2020.

Gartner, in its global IT spending report, also said it expects spending on enterprise software, IT services, and communications services to soften between 2018 and 2020, although at nowhere near the rate expected for data centre systems growth.

Spending on devices is the only category expected to see increased spending growth between 2018 and 2020.

Gartner expects data centre systems spending between 2018 and 2020 to remain flat at US$202 billion. Enterprise software spending is expected to rise from US$397 billion to US$466 billion.

Device spending is expected to rise from US$669 billion to US$689 billion. IT services spending is expected to rise from US$983 billion to US$1.08 billion. And Communications Services is expected to rise from US$1.40 billion to US$1.44 billion.

John-David Lovelock, research vice president at Gartner, said in a statement that 2019 IT spending will see growth despite uncertainty from recession rumours, Brexit, and trade wars and tariffs.

"However, there are a lot of dynamic changes happening in regards to which segments will be driving growth in the future. Spending is moving from saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and Internet of Things (IoT) devices. IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not," Lovelock said.

This article originally appeared at crn.com

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