On-Premise Data Centres - Down But Not Out
Futurecio, Monday, July 17,2023
Ten years ago, enterprises spent over US$80 billion per year on IT hardware and software for their own data centres, while well under US$10 billion on nascent cloud infrastructure services. Fast forward to the present day and spending on data centre hardware and software has only grown by an average of 2% per year, while spending on cloud services has ballooned, growing by an average of 42% per year to reach US$227 billion in 2022.
As enterprises radically reshaped their IT investments and crimped spending on their own data centres, the leading cloud providers rapidly built out huge global networks of hyperscale data centres.
With the number of large data centres operated by hyperscale providers approaching 900, new data from Synergy Research Group (SRG) reveals that hyperscalers now account for 37% of the worldwide capacity of all data centres with about half of that capacity own-built and owned data centres, and half at leased facilities.