This is a guest blog from Joe Skorupa.
The data center market has enjoyed years of relative stability and gradual technological evolution. That is about to change. In response to the early warning signs in this market, Gartner commissioned a new body of research to help our Technology and Service provider clients deal with the impending disruptions. We published the first research note today:
Four Highly Disruptive Factors Will Challenge the Survival of Incumbent Data Center Market
Joe Skorupa | Adrian O’Connell | Errol Rasit | Jeffrey Cole | Michael Warrilow | Roger W. Cox
Summary: There are four market disruptions in play in the DC infrastructure market. Elements of them are already in play, and will become visible no later than early 2016; however, radical action by just one significant player could accelerate the market disruption of any of the factors. …
A few key takeaways include:
Gartner predicts that by year-end 2016, the DC market will undergo drastic change, driven by four disruptive factors: highly disruptive competition, big cloud provider dominance, economic warfare and nationalism. Elements of these disruptive factors are already in play, and will become visible no later than early 2016; however, radical action by just one significant player could accelerate the market disruption of any of the factors.
By year-end 2017, DC infrastructure vendor gross margins will contract by up to 5 percentage points below current levels. This research was created to help vendor CxOs to understand and prepare for a new DC market. However, it can also help CIOs and VPs of I&O to understand vendor market positions to and to develop a process to assess risk.
This post is being writing while attending VMworld, where VMware CEO, Pat Glesinger, stressed disruption on his keynote and where VMware announced their first hyperconverged infrastructure offering. Clearly the disruptions are underway.