… As you know, we like to take a longest view we can on datasets, so here is the Gartner IT spending forecasts between now and all the way back to 2014: We like to track core IT spending – datacenter systems, enterprise software, and IT services – separately from spending on devices and telecom servi… …
… This was very much an enterprise systems market with the hyperscalers on the rise during the Dot Com Boom. The collapse in server spending was absolutely awful, and you can see the sawtoothing in the market on a slight upwards trend as proprietary systems had their predictable Q4 spending spikes. …
… The expected sharp growth in AI infrastructure spending is backing up this vision . Dell said that projections say spending could rise to $3 trillion to $4 trillion by 2030, though others show an even broader range, from $1.4 trillion to as much as $7 trillion by that year. …
… But the companies building AI training clusters saw a need to curtail existing spending to compensate for the crazy budgets of this new GenAI area. There has been incremental spending, to be sure, but maybe only half as much net increase as many had been expecting. …
COMPUTE So Far, Nobody Turns Tokens Into Money Like Nvidia It has been more than three years since GenAI exploded on the scene, transforming compute at the hyperscalers and cloud builders and leading to the enormous spending by the model builders who want to license their token chewing and token sp… …
… Dell says it already has 4,000 enterprise and sovereign AI customers, and it is still only making mid-single digit operating income off its AI business. …
… We also like to separate out datacenter systems spending, which is the dough the world blows for servers, switches, and storage, from what we call the core IT spending, which adds in enterprise software and IT services spending. …
… In a detailed report, early-stage venture capital firm Menlo Ventures wrote that 2024 was “the year that generative AI became a mission-critical imperative for the enterprise,” noting that AI spending grew to $13.8 billion last year , more than six times than the $2.3 billion spent in 2023. …
… Our Enterprise AI solutions have become our primary growth driver for Cloud for the first time. …
… In 2028, the research company expects full-year spending to exceed $100 billion as AI becomes pervasive in enterprises through greater use of discrete applications as part of their broader application landscape. …