Hybrid cloud will generate market growth opportunities

Enterprises will continuously optimize their IT deployments

A recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data centre industries, global data centre capex is on track to reach $US400 billion by 2027. We predict hybrid cloud will generate data centre market growth opportunities for both the hyperscale and enterprise markets.

“While the cloud hyperscalers will account for half the data centre 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 centres of the future,” explained Fung.

Additional highlights from the January 2023 Data Centre IT Capex 5-Year Forecast Report:

  • Worldwide data centre capex is forecast to grow 11 percent by 2027.
  • Macroeconomic factors may hinder near-term data centre investments, although forthcoming data centre architectures will stimulate long-term growth.
  • Edge computing is forecast to comprise 8 percent of total data centre infrastructure spending by 2027.



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