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Data Centers: Ripe for Dramatic Changes
Data Center spending is expected to exceed $143 billion this year. And with huge growth of applications and infrastructure moving to the cloud, the future of data center spending looks rosy. But Gartner warns that the rosy expectations are likely superficial in that the current data center landscape is likely to dramatically change. While there will be growth, there will also be fierce competition, disruption, and enormous changes in the data center market.
Four significant factors are brewing that are likely to drive disruption and conflict in the data market segment:
- Fierce Disruptive Competition
- Big Cloud provider dominance
- Economic Warfare
- Nationalism
Data Center vendors will likely fall into one of the following three categories:
- Protectors – vendors with large installed bases that will attempt to protect their market share, revenue and profit margins
- Evolutionary Disruptors – vendors that while trying to maintain their own installed base, but also seek to disrupt the business models of Protectors
- Revolutionary Disruptors – vendors that try to break into the market with simpler and more revolutionary solutions
Joe Skorupa, vice president at Gartner, said that “underneath this calm surface, increasing market pressures are driving a change in vendor behaviours, which, along with the four disruptive factors, make the market ripe for a period of major disruption. These behaviours will become more obvious as the pace of change increases… Elements of are already in play, and will become visible no later than early 2016; however, radical action by just one significant player could accelerate the market disruption of any of the factors .”
