TECH SUPPLIER May 2020 - IDC Survey - Doc # US46283120

Impact of COVID-19 on IT Infrastructure Spending: Spotlight on Servers, External Storage, and Cloud Computing — Wave 3 Update

By: Greg MacateeResearch Analyst, Infrastructure Systems, Platforms and Technologies, Paul MaguranisSenior Research Analyst, Infrastructure Systems, Platforms and Technologies, Eric SheppardResearch Vice President, Infrastructure Systems, Platforms and Technologies Group

On-line Presentation

Abstract

This IDC Survey examines the impact of economic uncertainty caused by the COVID-19 pandemic on IT infrastructure spending, specifically servers and storage. By examining dozens of organizations around the world, we can conclude the following:

  • The COVID-19 pandemic will have an immediate impact on 2Q20 spending worldwide. Regional sentiment varies, but on the whole, IT and LOB leaders are bearish on the second quarter.
  • Depending on how quickly economies restart and return to normalcy, IT spending may return to pre-crisis levels worldwide. Again, regional sentiment varies, but on the whole, IT and LOB leaders are cautiously optimistic.
  • As and when capital preservation strategies are relaxed a bit, it is likely that enterprises may demand creative opex-friendly IT infrastructure spending models like flexible consumption, pay as you go, and subscription pricing. They may also choose to invest more in converged and hyperconverged infrastructure. Many others may accelerate their journey to the public cloud.

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