Data center hardware spending to reach $126 billion by 2015: Gartner Report

October 14, 2011: A new research conducted by Gartner has forecasted that spending on data center hardware will reach $126.2 billion by 2015. The research report published also predicts that the market is going to expand at a rate of 12.7 percent starting from 2010, in terms of spending levels.

Gartner Inc is one of the world’s leading research company which conducts research in the area of IT. The company was founded in 1979and has it’s headquarter in Stamford, USA.

The report projects that the spending on data center hardware across the world will reach $98.9 billion in 2011. The projection says that the spending on Data Center hardware is expected to reach $106.4 billion in 2012. The data center hardware comprises of servers, storage and enterprise data center networking equipment. The increase in spending would lead to an increased capacity in IT outsourcing.

The main driver for this increased spending on Data center hardware are cloud computing and IT outsourcing. The market will witness largest growth in large data centers which increase the spending of the same by six percent till 2015. 

According to Jon Hardcastle, research director at Gartner, the spending on data spending hardware across the world will reach and exceed the level during 2008. He also added that the development in emerging economies such as Brazil, Russia, India, and China is balanced by the weakness in Japan and Western Europe. He explains that storage is main factor that promotes growth and fifty percent of the increased spending will be concentrated in the storage market. 

In the case of traditional in-house data centers, they face a three pronged attack. In the first place companies are able to utilize their infrastructure effectively with the help of virtualization technologies. In the second place the efficient data centers increase the deployment densities which reduce the requirement for floor space. In the last place the consolidated third party data center decision has reduced the number of mid size data centers.

According to MR Hardcastle the key driver behind the benefits that the large data centers is experiencing is the cloud computing. Gartner predicts that sixty percent of the data center floor space will be owned by 2 percent of the data centers.

According to the forecast made by International Data Corporation the Western European IT spending will reach $460 billion by 2015.

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