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Data center revenues declined in 4Q16 as customers prepare their infrastructure for the digital era


Data center modernization, including the rise in virtualization across customers’ data center environments as well as increasing adoption of public and hybrid cloud installments, shrinks server, storage and networking hardware profit pools. During 4Q16 revenue for incumbent data center hardware vendors fell 5.8% year-to-year, and gross profit declined 6.9% over the same period according to TBR’s 4Q16 Data Center Benchmark.

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