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Data Centers: Growth of the Cloud Deflates On-Premise Data Centers
While growth of data centers at the large cloud vendors is growing dramatically, on-premise data centers are down-sizing, consolidating, hollowing out, or being completely shut down.
2015 was the peak for the number of global data centers, according to IDC. Since 2015, the number of data centers has shrunk from 8.55 million to 8.4 million this year and to reach 7.2 million by 2021.
Meanwhile, top cloud vendors are ramping up their data centers quickly. Last year, Oppenheimer estimated that Amazon AWS uses 1.3 million ultra-powerful servers world wide in their cloud data centers. Oppenheimer estimates that by 2021 the major cloud vendors will control 65 percent of the global compute capacity.
John-David Lovelock, research vice president at Gartner, said that “enterprises are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft. This has created a reduction in spending on servers, which is impacting the overall data center system segment.”
