Research firm Gartner have projected a 2.1% growth in global IT spending, equating to $3.7 trillion, compared to an almost flat growth last year. This is marked decrease from their last projections; in April, they predicted 3.2% growth and a $3.8 trillion market by the end of 2014.
Gartner analyst John Lovelock attributes the lower estimates to a lack of diversification between products increasing competition and driving down prices. “Things are starting to become commoditized faster than we expected,” he said.
A breakdown of individual sectors in the Gartner report shows a marked shift away from traditional data warehouses and towards cloud computing. Although cloud computing constitutes a relatively small market share now, the performance and scalability of emerging cloud technologies has led many to predict a sharp increase in their market share. The IT services sector, which incorporates cloud computing, is set to grow 3.8% to $967 billion in 2014 according to the report, compared to zero growth last year. Enterprise software is also expected to see a distinct rise in market share, with a 6.9% increase to $321 billion estimated.
As IT services and cloud solutions accelerate, the data centre market is slowing down. Gartner projects a measly 0.4% growth to $140 billion this year. “On-premises data centers are in trouble, and hyperscale is where the interest and the growth are,” Lovelock concurred.
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If the projections are correct, they’ll corroborate the general assumptions of many that new database technologies and cloud solutions will prove to be a viable and competitive alternative to data centres- and perhaps even overtake them.
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