Traditional data centre outsourcing (DCO) spending is expected to decline from $55.1 billion in 2016 to $45.2 billion in 2020.
"As the demand for agility and flexibility grows, organisations will shift toward more industrialised, less-tailored options," said D.D. Mishra, Research Director at Gartner, in a statement.
Spending on co-location and hosting is also expected to increase from $53.9 billion in 2016 to $74.5 billion in 2020.
In addition, infrastructure utility services (IUS) will grow from $21.3 billion in 2016 to $37 billion in 2020 and storage as a service will increase from $1.7 billion in 2016 to $2.7 billion in 2020, the findings showed.
In 2016, DCO and IUS together represented 49 per cent of the $154 billion total data centre services market worldwide, consisting of DCO/IUS, hosting and Cloud infrastructure as a service (IaaS).
This is expected to tilt further toward Cloud IaaS and hosting, and by 2020, DCO/IUS will be approximately 35 per cent of the expected $228 billion worldwide data centre services market.
"By 2019, 90 per cent of native Cloud IaaS providers will be forced out of this market by the Amazon Web Services (AWS)-Microsoft duopoly," Gartner said.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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