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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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Don’t Forget The Huge Surge In 2018

Although 2019 will see a decline in data center spending, 2018 was a massive year for data centers. In 2018, data center spending grew a whopping 15.5 percent to $210 billion year over year, which was by far the largest growth area in the IT industry. Data center year-over-year spending growth in 2018 exceeded the 9.3 percent growth in enterprise software, 5.5. percent growth in IT services, 2.1 percent growth communications services and flat devices spending, according to Gartner.

“We’re coming off of a really big bump. A big refresh that happened across everything in 2018, including mainframe computers which helped out IBM. There was a large refresh going on,” said Lovelock, a distinguished analyst with over 41 years of industry experience. “We suspect that some of the buying in Europe is part of that inventory build-up ahead of the uncertainty of Brexit. We expected some of that refresh to continue into this year.”

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