News Summary

• At the same time, hyperscale data centers operated by the largest cloud companies will continue to grow at a hefty rate.It’s not exactly a death knell for on-prem, but capacity is clearly shifting to the cloud.
• Today, Synergy reports there are 900 hyperscale data centers worldwide, with that number split pretty much evenly between those facilities that are owned by the cloud providers and those that are leased.
• While growth has slowed pretty dramatically overall for the cloud infrastructure market, it has plunged for AWS in particular, dropping into the teens in its most recent report, compared with 37% growth in the year prior.
• New research from Synergy finds that on-prem data center growth is actually hanging in, but over the next five years, growth will remain essentially unchanged.
• On-prem still accounts for 40% of usage.Synergy is predicting that in five years, the cloud providers will control over half all capacity and the on-prem number will fall to 30%.
• By 2027, Synergy Research is projecting that number will be cut in half, but that data doesn’t tell the whole story.