Near-Term Cloud and Enterprise Capex Growth Expected to Decelerate
REDWOOD CITY, Calif., July 27, 2023 /PRNewswire/ — According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, AI infrastructure spending will propel data center capex to over a half trillion dollars by 2027. However, we anticipate near-term cloud and enterprise capex growth to decelerate as the market undergoes digestion.
“Despite near-term data center capex growth headwinds as the major cloud service providers and enterprises optimize their infrastructure, forthcoming technology transitions will stimulate long-term growth,” said Baron Fung, Senior Research Director at Dell’Oro Group. “Most notably, the hyperscale cloud service providers will prioritize their investments toward accelerated systems for AI applications for both their public cloud platform and SaaS offerings. We will see continuous optimization across the entire data center stack, with the deployment of next-generation servers featuring high-core counts and deeper memory that are attached to next-generation networks. Meanwhile, the rest of the market will invest in accelerated systems more selectively, with most enterprises adopting a hybrid cloud strategy,” explained Fung.
Additional highlights from the July 2023 Data Center IT Capex 5-Year Forecast Report:
Worldwide Data Center capex is forecast to grow 15 percent by 2027.Over 20 percent of the global server deployments in 2027 may be accelerated.Our edge computing forecast was trimmed as the ecosystem and compelling use cases have been slow to materialize.
About the Report
The Dell’Oro Group’s Data Center IT Capex 5-Year Forecast Report offers a complete overview of the market with historical data from 2014 to the present. The forecasts provide a comprehensive overview of market and technology trends and include tables covering data center and server capex and server unit shipments forecasts for Top 4 US Cloud, Top 4 China Cloud, Top 3 Tier 2 Cloud, Rest-of-Cloud, Telco, and Enterprise customer segments. The report also breakout markets for data center infrastructure equipment, along with server, storage system, and other data center equipment revenues sub-segments. To purchase this report, please contact us at dgsales@delloro.com.
About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructuremarkets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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SOURCE Dell’Oro Group