Thursday, October 19, 2017


Data centre infrastructure equipment revenues hit $30bn, Microsoft, Dell EMC, Cisco and HPE lead sector



Cloud service revenues continue to grow by over 40% per year, enterprise SaaS revenue grows by over 30%, and search/social networking revenues grows by over 20%.

Capital expenditure on data centre infrastructure equipment has reached $30bn in Q2 2017 with public cloud infrastructure accounting for over 30% of the total, despite spending on all data centre hardware and software growing by just 5%.

The slow growth in the all data centre hardware and software vertical is overshadowed by the 35% jump in increased spending on public cloud compared to Q2 2015, according to Synergy Research.

On the private cloud segment, revenues grew 16% in Q2 this year when compared to the same period two years ago.

However, spending on traditional, non-cloud data centre hardware and software has dropped by 18%.

Original design manufacturers (ODM) in aggregate account for the largest portion of the public cloud market, with Cisco being the leading individual vendor, followed by Dell EMC and HPE.

The Q2 market leader in private cloud was Dell EMC, followed by HPE and Microsoft. The same three vendors led in the non-cloud data centre market, though with a different ranking.

Other leading vendors in the market are IBM, VMware, Huawei, Lenovo, Oracle and NetApp.

John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group, said: “With cloud service revenues continuing to grow by over 40% per year, enterprise SaaS revenue growing by over 30%, and search/social networking revenues growing by over 20%, it is little wonder that this is all pulling through continued strong growth in spending on public cloud infrastructure.

“While some of this is essentially spend resulting from new services and applications, a lot of the increase also comes at the expense of enterprises investing in their own data centres.

“One outcome is that public cloud build is enabling strong growth in ODMs and white box solutions, so the data centre infrastructure market is becoming ever more competitive.”