Cloud grows but server shipments down – and AI's to blame

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Cloud grows but server shipments down – and AI's to blame
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Another thing you can blame AI for: Cloud grows but server shipments are down

The cloud market continues to grow, but at a slowly declining rate, while investment is shifting to meet the demand for AI services, diverting spending away from other projects.

Synergy's figures cover enterprise spending on cloud infrastructure services, and it reckons the total was close to $65 billion worldwide for Q2 2023. The economic climate has"crimped some growth" in cloud spending, but the market continues to expand at a healthy rate despite those short-term challenges, Synergy states., which said it intends to reduce its annual server shipments forecast for this year by 1 million units to 12.

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