Global data centre hardware and software spend hits $152bn in 2019

Data Centre Data centre hardware and software spend was driven by public cloud

New data shows that worldwide spend on data centre hardware and software reached $152 billion in 2019, up 2% from 2018.

Synergy Research Group revealed that spending on public cloud data centre hardware and software grew by 7%, while spending on traditional data centre and private cloud fell by 1%.

Public cloud data centres now account for 37% of the total, and their share of spending having grown from 25% in 2015.

According to the data, Q4 spending on all data centre hardware and software was up 7% from Q3, reflecting normal seasonal trends.

The total data centre infrastructure spending data covers both cloud and non-cloud, service provider and enterprise data centre, hardware and software, Synergy said.

By product, the data covers servers, OS, storage, networking, virtualisation software, network security and management software.

“Cloud service revenues grew by 39% in 2019, enterprise SaaS revenues grew by 26%, search/social networking revenues grew by 20%, and e-commerce revenues grew by 24%, all of which helped to drive increases in spending on public cloud infrastructure,” said John Dinsdale, a Chief Analyst at Synergy Research Group.


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“Meanwhile, enterprise spending on their own data centres is being crimped by the shift in workloads to public clouds.

“We are already seeing server shipments to public cloud providers outstripping shipments to enterprises and that trend will continue.”

The data also revealed that servers are the largest product category and accounted for 46% of hardware and software spending in 2019.

Vendor market share ranking in Q4 showed the leaders being Dell, Microsoft, HPE and Cisco. They were followed by Huawei, IBM, VMware, Inspur and Lenovo.

In the public cloud segment, ODMs accounted for the biggest share of the market, and they also benefited from a big year-end spike in shipments to hyperscale operators.

Annual spending on cloud infrastructure services went from virtually zero to almost $100bn, but spending on data centre hardware and software has been stagnant at the beginning of the year.

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