Suggestions for recovery in data center infrastructure business

Spending on data center infrastructure is projected to increase at 6 percent to $200 billion in 2021, according to the latest forecast from Gartner.
TierPoint data center
The global data center spending in 2020 is expected to drop 10.3 percent due to restricted cash flow during the pandemic. Lockdowns from Covid-19 will prevent more than 60 percent of planned new facilities construction in 2020.

The data center market is still expected to grow year-over-year through 2024.

“Larger enterprise data centers sites will hit pause temporarily and then resume expansion plans later this year or early next. Hyperscalers will continue with their global expansion plans due to continued investments in public cloud,” said Naveen Mishra, senior research director at Gartner.

Suggestions for recovery in data center infrastructure opportunities

# Training the organization’s sales force to engage with the chief financial officer (CFO) and chief procurement officer on a set of cost optimization initiatives such as renegotiating IT contracts, optimizing cloud costs, and consolidating IT.

# Crafting an industry playbook that helps technology providers understand COVID-19’s impact on a range of different industries to then recommend short- to midterm action items for the given providers by each industry.

# Investing in a new go-to-market model for digital natives to drive innovation. Build momentum around hybrid IT and consumption-based pricing to improve mind share with digital natives.

The data centre infrastructure spending in India is expected to touch $2.8 billion, with an year over year decline of 14.4 per cent in 2020 and an estimated single digit growth in 2021, a new Gartner report said.

Many Indian enterprises delayed their infrastructure Capex (capital expenditures) intensive refresh/upgrades due to the ongoing cost containment, according to the latest forecast from the global market research firm.