Google and Microsoft Lead Spending
REDWOOD CITY, Calif. – September 22, 2021 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, Cloud data center capex is forecast for over 20 percent growth year-over-year in the next four quarters. However, Enterprise spending, while showing signs of recovery, is expected to be hampered in the near-term by the on-going supply chain constraints.
“The Cloud service providers’ digestion cycle has persisted longer than predicted due to the continued market uncertainty,” said Baron Fung, Research Director at Dell’Oro Group. “We anticipate another Cloud expansion cycle to commence starting in the second half of this year, with the service providers increasing their deployment of the latest generation of servers based on the Intel Ice Lake and AMD EPYC Milan x86 processors. While the on-going supply chain issues may hinder investments, the Enterprise, rather than the Cloud is likely to be impacted,” explained Fung.
Additional highlights from the 2Q 2021 Data Center Capex Quarterly Report:
- Worldwide data center capex forecast to grow 9 percent in 2021.
- Network infrastructure spending is projected to outgrow IT infrastructure spending this year.
- Google and Microsoft to lead all Cloud service providers in data center capex in the next four quarters, collectively launching services in 13 new regions.
Dell’Oro Group’s Data Center Capex Quarterly Report details the data center infrastructure capital expenditures of each of the ten largest Cloud service providers, as well as the Rest-of-Cloud, Telco, and Enterprise customer segments. Allocation of the data center infrastructure capex for servers, storage systems, and other auxiliary data center equipment is provided. The report also discusses market trends, drivers of the leading Cloud service providers’ capex growth during the quarter, and the outlook for the next year. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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