Oh no, you're thinking, yet another cookie pop-up. Well, sorry, it's the law. We measure how many people read us, and ensure you see relevant ads, by storing cookies on your device. If you're cool with that, hit “Accept all Cookies”. For more info and to customize your settings, hit “Customize Settings”.

Review and manage your consent

Here's an overview of our use of cookies, similar technologies and how to manage them. You can also change your choices at any time, by hitting the “Your Consent Options” link on the site's footer.

Manage Cookie Preferences
  • These cookies are strictly necessary so that you can navigate the site as normal and use all features. Without these cookies we cannot provide you with the service that you expect.

  • These cookies are used to make advertising messages more relevant to you. They perform functions like preventing the same ad from continuously reappearing, ensuring that ads are properly displayed for advertisers, and in some cases selecting advertisements that are based on your interests.

  • These cookies collect information in aggregate form to help us understand how our websites are being used. They allow us to count visits and traffic sources so that we can measure and improve the performance of our sites. If people say no to these cookies, we do not know how many people have visited and we cannot monitor performance.

See also our Cookie policy and Privacy policy.

This article is more than 1 year old

On-premises hardware sales about to boom says Morgan Stanley

You put off buying any while figuring out the cloud, but now you're ready to spend

Financial Services colossus Morgan Stanley reckons on-premises hardware vendors are about to have their best sales season for a decade.

The firm popped out a research note on Monday February 26th in which head of North American Technology Hardware Equity Research Katy L. Huberty said that while "every $1 of revenue growth for the largest cloud service has resulted in about $3 of revenue decline for the major legacy technology companies … several catalysts are converging to give IT Hardware a second life-and drive double-digit earnings growth in 2018."

Huberty wrote that slow growth in enterprise hardware sales has been caused by businesses adopting cloud, but not because they've stopped buying on-premises kit forever. Instead, "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."

Those decisions have now been made, she wrote. "With plans now coming into focus, companies are ready to make necessary upgrades to their IT Hardware."

"The outlook for IT Hardware is further bolstered by a weaker U.S. dollar, declining memory prices and improving revenue scale," Huberty wrote, adding "This adds up to an average 60 basis point gross margin expansion for the group, the largest improvement since the initial recovery out of the recession."

Enthusiasm for artificial intelligence and the internet of things will help, too, by creating demand for new data center kit. That's in contrast to the last couple of IT spending sprees that were driven by consumers.

The firm's therefore given IT hardware vendors "a double upgrade … from cautious to attractive." ®

Similar topics

Similar topics

Similar topics

TIP US OFF

Send us news


Other stories you might like