COVID-19 and the government restrictions imposed to slow the spread of the virus required businesses to change. While many of these changes had devastating effects, they also brought attention to the need for safe, secure, and resilient data center systems.

Here are some ways COVID-19 impacted the data center industry.

Spending on Equipment Slowed

Preliminary numbers show spending on IT equipment decreased by about 10% in 2020 for a few reasons:

  • Small businesses were disproportionately affected by the pandemic. Many froze spending or shut down altogether.
  • The uncertainty of business restrictions created a reluctance to expend capital in case it was required to weather an extended shutdown.
  • The government required businesses to spend disaster assistance retaining employees and paying leases. As a result, those businesses that received government loans and grants did not spend the money on new equipment.
  • The global pandemic shrunk aggregate demand for all products and caused supply chain issues for every business in the world.

However, as the economy recovers, this drop-off in spending will prove temporary. Some businesses might even go on a spending spree as the pandemic subsides to accommodate the expected economic recovery.

Security Moved to the Foreground

Many businesses and workers had to figure out how to facilitate remote work. The data centers that provided cloud storage, cloud applications, network access, and video conferencing had to find ways to meet the increased demand, and the increased risk of hacking and intrusion.

According to the FBI, cybercrimes in the U.S. increased by 300% during the pandemic. Businesses with the most resilient systems and proactive data center managers helped the country stay up and running.

Flexibility Became Key

The pandemic was highly disruptive on a human and business scale. Many people died and many businesses had to close their doors forever. Some data center providers were disrupted by layoffs and a shift to remote work and data center supply businesses were unable to source many of the hardware and software products their customers needed.

Businesses that fared the best were the ones that were flexible and had the partnerships to weather supply chain issues.

COVID-19 had a severe impact on businesses. But as businesses worked through the difficulties, they found new and better ways to prepare for the next global disaster.

Contact LDP Associates, the provider of mission critical support solutions, for more information.