Infotech Lead Asia: Data center spending will grow 3.7 percent to $146 billion in 2013.
However, 3.7 percent projected increase is down 0.7 percent from Gartner’s previous forecast. Gartner revised its forecast mainly due to cuts to the near-term forecast for spending on external storage and the enterprise in the economically troubled EMEA region.
Data Center Systems will see investment of $152 billion in 2014, up 4 percent from 2013 level.
Meanwhile, TechNavio’s analysts forecast the global data center network equipment market to grow at a CAGR of 12.16 percent over the period 2012-2016.
One of the key factors contributing to this market growth is the increasing popularity of cloud services. The global data center network equipment market has been witnessing increasing virtualization in network environments. However, the uncertain global economic conditions could pose a challenge to the growth of this market.
Increasing popularity of cloud services is one of the major drivers in the Global Data Center Network Equipment market. Cloud services are cost-effective and help companies in increasing their productivity. Enterprises are increasingly embracing both public and private cloud computing services.
Declining equipment prices constitute one of the major challenges in the global data center network equipment market.
Gartner on Thursday said the worldwide IT spending is projected to $3.8 trillion in 2013, up 4.1 percent from 2012 spending of $3.6 trillion. Currency effects are less pronounced this quarter with growth in constant dollars forecast at 4 percent for 2013.
Richard Gordon, managing vice president at Gartner, said: “Though the United States did avoid the fiscal cliff, the subsequent sequestration, compounded by the rise of Cyprus’ debt burden, seems to have netted out any benefit, and the fragile business and consumer sentiment throughout much of the world continues.”
Main equipment vendors to benefit data center growth include Cisco Systems, F5 Networks, Hewlett-Packard, Alcatel-Lucent, Avaya, Brocade Communications Systems, Citrix Systems, Dell, Enterasys Networks, Extreme Networks, Huawei Technologies, IBM, Juniper Networks, NEC, Oracle, QLogic, Riverbed Technology and ZTE.
TechNavio says virtualization has increased the deployment of multi-core and blade server platforms resulting in consolidation of the storage environment. Virtual networks can be programmed, bonded to workloads, and are scalable to demand.
Ambika K [email protected]