Coronavirus: the server and storage market impacted

In the midst of a Covid-19 coronavirus pandemic, IDC believes that the growth of cloud services will not be enough to offset the decline in business investment in the server and storage systems market.

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The research firm had already anticipated a contraction in IT investments, in the broad sense, last week. It now confirms that the growth in demand for data centers driven by the development of cloud services will not be enough to save the server market from the effects of the coronavirus-Covid-19 pandemic, IDC estimates.

The IT infrastructure market has two sub-markets that are going in different directions: the decline in demand from businesses and the increase in demand from cloud service providers. This dynamic affects the server market the most, leading to a moderate decline in the overall market in 2020. The market for external storage systems, with a higher share of enterprise buyers, will experience a deeper decline in 2020 . ”Indicates IDC.

Datacenters and businesses: a two-speed market

According to its forecasts, the revenues of the “servers” segment will decrease by 3.4% year on year to $ 88.6 billion and those of storage systems (EES for Enterprise Storage Systems) by 5.5% to $ 28.7 billion in 2020. The server market should decline by 11% in the first quarter and 8.9% in the second quarter, then resume growth in the second half. The SSE market is expected to decline 7.3% in the first quarter and 12.4% in the second quarter before returning to slight growth by the end of 2020 and a further recovery expected in 2021.

IDC analyzes this market at two speeds. On the one hand, economic uncertainty that is accelerating the adoption of cloud services and boosting demand for data centers. On the other, companies from many sectors (transport, hospitality, retail, etc.) faced with a significant reduction in their activity which reduces their IT investments.

As the first country affected by Covid-19, China will suffer the greatest negative impact in the first quarter while the other countries, particularly in Europe, will be confronted with it in the second quarter.

The cabinet is cautious that the current forecast could be further adjusted according to changing world conditions.

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