The latest report from the market research company Dell'Oro Group shows that the capital expenditure of the Hyperscale Cloud data center is expected to increase by 20% in 2021. However, Dell'Oro predicts that the recovery of corporate IT spending will be uneven, mainly because small and medium-sized enterprises are in a downturn in the market.
"We predict that as the unfavourable factors related to the epidemic are alleviated, the overall data center capital expenditure will resume strong single-digit percentage growth in 2021. It is expected that major technology areas such as IT, networking and physical infrastructure will achieve growth. And benefit the entire ecosystem." said Baron Fung, research director of Dell'Oro Group. "It is expected that the growth of Top 10 or ultra-large-scale cloud service providers will exceed that of other market segments, and their expenditures will be driven by the deployment of Intel Ice Lake processor-based servers, the deployment of next-generation networks, and the continuous expansion of new data center construction. "He explained.