Data Centre Spending To Hit $143bn In 2015

Data centre systems spending is projected to reach $143bn in 2015, a 1.8 percent increase from 2014, according to Gartner research.

The figures come from the firm’s worldwide IT spending outlook, which has predicted spending on pace will grow 2.4 percent in 2015. That accounts for a total of $3.8 trillion, but is still down 3.9 percent from earlier forecasts.

Rising US dollar

The slower outlook is attributed to the rising US dollar as well as reduction in growth expectations for devices, IT services and telecom services.

“The change in forecast is less dramatic than it might at first seem. The rising US dollar is chiefly responsible for the change — in constant currency terms the downward revision is only 0.1 per cent,” said John-David Lovelock, research VP at Gartner.

“Stripping out the impact of exchange rate movements, the corresponding constant-currency growth figure is 3.7 per cent, which compares with 3.8 per cent in the previous quarter’s forecast.”

In December, research firm Mordor intelligence also gave data centres a healthy outlook, predicting that the global data centre colocation market will grow from $25.07bn in 2014 to $44.69bn by the end of 2019.

In the enterprise software market, spending is on pace to total $335bn, a 5.5 percent increase from 2014. More price erosion and vendor consolidation is expected in 2015 because of fierce competition between cloud and on-premises software providers. In particular, in the customer relationship management (CRM) market, a key cloud battleground, seat prices for segments such as sales force automation (SFA) are expected to decline by 25 percent through 2018.

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