Cloud Capex Projected to Decline from the Prior Year, says Dell'Oro Group

Cloud Capex Projected to Decline from the Prior Year, says Dell'Oro Group Image Credit: dolgachov/Bigstockphoto.com

Dell'Oro Group announced the launch of its new Cloud Data Center Capex report. The market research company projects cloud capex to decline from the prior year.

"Data center capital expenditure, which consumes the largest share of Cloud service provider spending, is a valuable measure that we track each quarter," said Baron Fung, Research Director at Dell'Oro Group. "We also forecast data center capex of the largest Cloud service providers, which offers insights to potential supply chain disruptions. For example, after traveling to China and learning that IT spending by Cloud service providers would soften as economic uncertainty escalates, we forecasted Baidu Alibaba, and Tencent (BAT) to collectively decline data center capex in first half 2019. Indeed, major IT suppliers to BATs, such as Cisco and Lenovo, have recently attributed weaker 2Q19 earnings to this sector," added Fung.

"Dell'Oro Group has been tracking Cloud Data Center service provider capex spend since 2014 as an important factor to our forecast models. With Baron joining the firm, he took the initiative to expand our data and refine our analysis. This information is a solid set of predictive analysis," said Tam Dell'Oro, CEO and Founder of Dell'Oro Group.

Dell'Oro Group's Cloud Data Center Capex quarterly report includes detailed capital spending of each of the largest ten Cloud service providers on data centers and servers. In addition to capital spending, the report includes information on the number of regions and availability zones for each Cloud service provider, as well as the number of installed servers. The report also discusses market trends and drivers of leading Cloud service providers' capex growth during the quarter and the outlook for the next year.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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