The Brexit Effect on Server and Storage Spending in the U.K. and Western Europe: A Scenario Assessment
This IDC study aims to give IDC's initial reforecast of our top-line market sizes for server and storage hardware spending in the U.K and Western Europe to help technology providers, channel partners, and end users plan for the near future following the historic Brexit vote. IDC believes this will affect demand for ICT products and services across the board — software, hardware, IT services, and telecom services for which IDC produces market sizes and forecasts. "The server and storage markets will see a negative effect in the short to medium term — planned datacenter modernization projects and new datacenter buildouts in the U.K. could be either postponed or delayed, because large multinational organizations will reconsider if the U.K. is the best location for a long-term datacenter investment," said Carla Arend, research director, IDC European Infrastructure and Cloud Research. "Furthermore, the devaluation of the British pound drives server and storage manufacturers to adjust (increase) their pricing for the U.K. market, making it difficult for U.K. businesses to acquire technologies at desired budgets. However, distributors might delay this effect by one or two quarters as they are very savvy at stocking up when they anticipate a price rise."
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