updated: 23-10-2020 | 11:53
Global IT spending is projected to reach $ 3.8 trillion by 2021, a 4% increase from 2020, according to Gartner's latest forecast. Despite 10% Spending Decline in 2020, Data Center Market Will Rebound Over Next Four Years
“In the 25 years Gartner predicted IT spending, there has never been a market with so much volatility,” said John-David Lovelock, Distinguished Research Vice President at Gartner. "While unique stressors have been imposed on all industries as the ongoing pandemic unfolds, the organizations that were already more digital during the crisis are doing better and will continue to thrive into 2021."
2021 will see second-highest growth ever in data center spending
Spending on data center systems will see the second-highest growth of 5.2% in 2021 as hyperscalers accelerate global data center expansion and mainstream organizations resume data center expansion plans and staff can be physically back on site, despite the increase in cloud activity. In 2020, when organizations transitioned to a remote environment, cloud business spending - which falls into multiple categories - will not be reflected in vendor revenues until 2021.
Cloud spending 2020 transferred to 2021
“The spending slowdown that occurred from about April through August this year, coupled with the 'try before you buy' programs from cloud service providers, is shifting cloud revenue from 2020,” said Lovelock. “Cloud proved itself this year: it worked during the pandemic, it scaled up and it scaled down. This evidence point will allow accelerated cloud penetration through 2022. "With earnings uncertain, driving money from king to emperor, CIOs are now prioritizing IT projects with the lowest time-to-value," said Lovelock.