The Data Center Is (Almost) Dead

The shift away from the traditional data center continues, but not everything is moving to the cloud.

In the past, when business units requested new applications or services, IT organizations would first ask themselves, “How can we build it?” Now, the question is “Where can we find it?”

Gartner predicts that by 2025, 80% of enterprises will shut down their traditional data centers. In fact, 10% of organizations already have.

Gartner predicts that the number of organizations that will close their traditional data centers will reach 80% in 2025.

Many organizations are rethinking the placement of applications, based on network latency, customer population clusters and geopolitical limitations — for example, the EU’s General Data Protection Regulation (GDPR) or regulatory restrictions.

Enterprises with older data centers don’t want to rebuild them or build new ones due to high capital costs. They would rather have someone else manage the physical infrastructure. Gartner’s 2019 IT Key Metrics Data shows that the percentage of the IT budget spent on data centers has decreased over the past several years, and now accounts for just 17% of the total.

Colocation is often used as a replacement for traditional data centers, because it offers higher availability, reliability, certified building tier levels, energy efficiency, dedicated facilities management and the ability to scale.

What remains on-premises are business processes that are mission-critical and require greater oversight and more detailed levels of control than is available via cloud infrastructure and hosted models.

The Art of the One-Page Strategy

Learn why storytelling is an integral element of strategy.

View the Webinar

Gartner clients can read more in Top 10 Emerging Trends Affecting Digital Infrastructure and Operations in 2019 by David Cappuccio and Ross Winser.

Get Smarter

Gartner IT Infrastructure, Operations & Cloud Strategies Conference

Build on forward-thinking I&O research and get hands-on, how-to advice.

Explore Gartner Conferences

The Infrastructure and Operations Leader’s First 100 Days

What you do in your first 100 days as a new infrastructure and operations leader will be critical to your success.

Read Free Gartner Research

Webinars

Get actionable advice in 60 minutes from the world's most respected experts. Keep pace with the latest issues that impact business.

Start Watching