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Cloud Computing

The growth in Cloud doesn't mean the end of On-Prem

Public Cloud companies are expanding at rapid paces - even smaller players such as Alibaba and Oracle are making announcements about new markets – while the likes of AWS, Azure, and Google announce healthy profits and a steady release cycle of new products.

IT budgets are generally going up, and much of the spending is going into the Cloud. However, a new research note from Morgan Stanley is suggesting IT hardware is about to get ‘a Second Life’.

“Several catalysts are converging to give IT Hardware a second life—and drive double-digit earnings growth in 2018,” according to Katy L. Huberty, Head of North American Technology Hardware Equity Research. “With plans now coming into focus, companies are ready to make necessary upgrades to their IT Hardware.”

“One of the biggest detractors of growth hasn't been the actual migration of computing to Cloud, but rather decision-making around the Cloud.  For the last few years, enterprises have been putting IT Hardware spending on hold while they grapple with decisions around how, when and how much of their workloads to move to the Cloud.”

The most recent analyst figures suggest the prediction is on point. According to Gartner, Server shipments in the 4th quarter of 2017 saw 8.8% growth compared to the same quarter last year, while almost all of IBM’s recent revenue growth has been down to the company’s latest z14 mainframe.

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Dan Swinhoe

Dan is a journalist at CSO Online. Previously he was Senior Staff Writer at IDG Connect.

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