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Report confirms on-premises data center spending declined

September 21, 2017


Just a month ago we had research that indicated on-premises data center investments were dropping in priority as companies moved to the cloud. Now a second report confirms this suspicion that companies are de-emphasizing their on-premises data centers in favor of the cloud.

The numbers come from Synergy Research, which show that spending on traditional, non-cloud data center hardware and software dropped 18 percent between the second quarters of 2015 and 2017. During that same period, public cloud spending grew 35 percent. The overall market for data center equipment grew by 5 percent to a total of more than $30 billion.

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