Double-Digit Growth Forecast for Cloud Datacentre Capex in 2020

In BICSI Bytes, Newsby

According to a recent Dell’Oro Group report, cloud service-providers (CSPs) will revert from their current ‘capacity consumption’ posture to one of ‘capacity expansion’ by 2020. This change will drive cloud datacentre capex to double-digit growth in 2020 as the major CSPs expand datacentre footprints in new and existing regions.

“Some of the major CSPs reduced their datacentre capex in 2019 as they continue to consume excess server capacity,” said Baron Fung, Director at Dell’Oro Group. “However, we anticipate that the top 10 CSPs will bring more than 40 new regions on-line over the next 12 months. Spending on new servers and networking equipment are expected to ramp and drive Cloud datacentre capex to higher growth in 2020.”

Highlights from the Quarterly Report include:

  • The Top 10 CSPs spent US$6.9 billion in aggregate on datacentres;
  • The Top 4 US-based CSPs – Amazon, Facebook, Google, and Microsoft – had 80% share of the datacentre capex of the Top 10 CSPs.
  • Amazon leads all CSPs with the most regions in operation, followed by Google and Microsoft.