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Big Vendors Blame Macroeconomics for Weak Data Center Hardware Sales

November 27, 2019 / evgeniy Sverdlik

Corporate spending on data center servers, storage, and networking hardware has slowed down, and the largest companies that sell this equipment are faulting macroeconomic uncertainty caused, according to them, by international trade disputes and other geopolitical tensions. Hewlett Packard Enterprise, Cisco Systems, and Dell Technologies all reported earnings for the last full quarter this month (Dell’s report came Tuesday), and weak enterprise data center hardware purchasing was a common theme across the board. Cisco started seeing “some weakness” due to global macroeconomics in the quarter before last, CEO Chuck Robbins said on the company’s earnings call earlier this month. It was mainly apparent in service-provider and emerging-markets segments at the time, he said. But the weakness has now broadened to also include enterprise and commercial segments, he said.