Skip navigation

Forrester: Data Center Spending A Priority

76 percent of enterprises classify data center upgrades or migrations as a "critical priority" in the next 12 months. But concerns remain.

As we noted in our recent series on the credit crunch and data center demand, leading providers say they haven't seen any worrisome decrease in demand. Analysts remain cautious about these assurances. Data center providers maintain that investments in infrastructure are hard to cancel or postpone.

New data from Forrester supports this contention, finding that despite the weak economy, many enterprises continue to plan major IT projects and purchases. "Seventy-six percent of respondents said hardware and data center upgrades or migrations are a 'priority' or a 'critical priority' during the next 12 months," according to a summary in Network World.

But there are still concerns in the analyst community. Last week Cannaccord Adams lowered its revenue estimates for Savvis (SVVS). "Our channel checks indicate that macro-economic issues may be causing a slight hesitation in sales at Savvis, specifically in managed services," the analysts wrote. "We do not believe this hesitation will affect March quarter results, but may be reflected in more cautious forward guidance."

Canaccord Adams continued its buy rating on Savvis, but removed the stoskc from its "Best Ideas" list, saying the stock's price is likely to be more volatile.