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Data Center Spending To Decline In 2019: 5 Reasons Behind The Fall

Leading Gartner researcher John-David Lovelock talks about the major reasons and trends behind the projected 2.8 percent decline in data center spending in 2019.

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What’s Behind The Data Center Spending Fall?

Worldwide spending on data center systems will decline 2.8 percent in 2019 to $204 billion year over year, according to new research from Gartner. There are many factors in the broad data center market that is causing the spending to drop that channel partners and vendors alike need to take into account, says John-David Lovelock, research vice president at Gartner who helped build the research firms’ 2019 Global IT Spending Forecast report.

“The overriding thing we have to really hone in on is the split now between the spending by enterprises – so your typical banks, retailers and governments, etc. -- buying compute and servers, and the amount being spent by the service providers who go either into the enterprise space like Google, Amazon, Microsoft or the consumer space like Facebook,” said Lovelock in an interview with CRN.

Gartner is now projecting that worldwide IT spending will total $3.79 trillion in 2019, up 1.1 percent year over year. The data center systems segment will experience the largest spending decline this year, according to Gartner. Lovelock breaks down the five biggest reasons and trends shaping data center spending in 2019.

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