The spending on Data Center system is expected to drop 10 percent to $188 billion in 2020, even as global IT spending is also expected to shed $300 billion in 2020 while cloud spending will surge by 6.3 percent.
According to Gartner, a research and advisory company, cloud system infrastructure services are estimated to grow from $41 billion in 2019 to $63 billion in 2020. It also projected that SaaS solutions will generate $104.7 billion in 2020. The figure was $102.1 billion in 2019 and is set to grow to $121.0 billion in 2021, and further to $140.6 billion in 2022.
Meanwhile, a study by IDC has shown that in Q1 2020, on-premises IT spending sank by 16.3percent YoY, while cloud spending grew by 2.2percent. Similarly, in Q2 2020, traditional IT spending fell by 8.7percent YoY while cloud spending soared by 34.4percent YoY.
Q3 2020 saw a 33percent YoY upsurge in global cloud spending to reach $36.5 billion according to a forecast by Canalys. That was $2 billion higher than Q2 2020 and $9 billion higher than Q3 2019.
Moreover, Gartner projects that global IT spending will decline by 8% YoY in 2020 to $3.5 trillion, down from $3.8 trillion in 2019, which means that the drop will be a massive $300 billion. However, cloud spending will grow by 6.3% during the same period.