Hybrid Cloud Will Generate Market Growth Opportunities
REDWOOD CITY, Calif. – February 9, 2023 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, global data center capex is on track to reach $400 billion by 2027. We predict hybrid cloud will generate data center market growth opportunities for both the hyperscale and enterprise markets.
“While the cloud hyperscalers will account for half the data center infrastructure spending by 2027, significant opportunities exist on-premises,” said Baron Fung, Research Director at Dell’Oro Group. “Enterprises will continuously optimize their IT deployments, balancing workloads in the multi-cloud with those on-premises. New applications will also demand infrastructure at the edge leading to the emergence of a new ecosystem. Furthermore, upcoming advances in new server architectures, accelerated computing, and sustainability will enable greater efficiencies in the data centers of the future,” explained Fung.
Additional highlights from the January 2023 Data Center IT Capex 5-Year Forecast Report:
- Worldwide data center capex is forecast to grow 11 percent by 2027.
- Macroeconomic factors may hinder near-term data center investments, although forthcoming data center architectures will stimulate long-term growth.
- Edge computing is forecast to comprise 8 percent of total data center infrastructure spending by 2027.
The Dell’Oro Group’s Data Center IT Capex 5-Year Forecast Report offers a complete overview of the market with historical data from 2014 to the present. The forecasts provide a comprehensive overview of market and technology trends and include tables covering data center and server capex and server unit shipments forecasts for Top 4 US Cloud, Top 3 China Cloud, Top 3 Tier 2 Cloud, Rest-of-Cloud, Telco, and Enterprise customer segments. The report also breakout markets for data center infrastructure equipment, along with server, storage system, and other data center equipment revenues sub-segments. 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, security, networks, and data center 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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