2 min

Gartner has some good news for data center infrastructure vendors. In a forecast Gartner predicts that there will be a 6% growth in spending next year. The expected growth is attributed to businesses rebounding from cash flow problems that resulted from the Covid-19 pandemic.

The prediction states that the end-user on global data center infrastructure will finally hit $200 billion in 2021.

The report continues to say that data center infrastructure spending has declined by more than 10% this year. The lockdowns hold back up to 60% of new data center facility construction. They say that the decline will come to a standstill with growth year-over-year until 2024.

Public cloud carries on

The priority for most companies in 2020 is about surviving. That means taking what they have and finding out how to keep it that way. Data centers have taken the back seat as of now, according to Naveen Mishra, a senior research director at the analyst firm.

Gartner expects that the larger enterprise data centers will stop for a while and then resume expanding later in 2020 or early 2021.

However, the hyperscalers will not stop their expansion because the public cloud has seen so many investments.

Wikibon sees a potential uptick too

Spending on IT has slowed down since the pandemic hit. In the latest reports, Wikibon predicted that there will be a 5% decline, based on surveys conducted on Enterprise Technology Research (ETR).

Like Gartner, Wikibon says that there will be a quick recovery next year with the ETR data indicating that there could be a 2% growth in tech spending next year. 

First, Gartner believes that companies should invest in training their sales forces to target CFOs and Chief Procurement Officers to optimize cost optimization initiatives in renegotiating contracts and consolidate IT.