Transforming Network Infrastructure Industry News




TMCNet:  Spending on Public Cloud Infrastructure Continues to Surge in Q1

[June 18, 2018]

Spending on Public Cloud Infrastructure Continues to Surge in Q1

RENO, Nev., June 18, 2018 (GLOBE NEWSWIRE) -- New Q1 data from Synergy Research Group shows that public cloud provider spending on infrastructure hardware and software continues to surge, growing 32% from the first quarter of 2017 after an unusually strong start to the year. This is the highest growth figure seen in nine quarters, during which year-on-year growth has typically been in the 10-20% range. The first quarter usually sees a sharp drop off after a seasonally strong fourth quarter, but first quarter spending was down just 2% from Q4. In terms of vendor market share, ODMs in aggregate continue to run away with the market and now account for almost 30% of total revenues. They are followed by Dell EMC, Cisco and HPE, each with a 5-10% market share. The next highest ranked vendors in Q1 were Microsoft, Huawei and VMware.

Cloud Equipment
Cloud Infrastructure Equipment Q1 2018


Total public cloud infrastructure revenues, including hardware and software, passed the $10 billion per quarter milestone in Q3 of last year and are now comfortably over $11 billion. Servers, OS, storage, networking and virtualization software combined accounted for 95% of the Q1 public cloud infrastructure market, with the balance comprising cloud security and cloud management. By segment, ODMs dominate server and storage hardware shipments, followed at a distance by Dell EMC, HPE and Cisco. Cisco has a clear lead in networking, despite the continued strong growth of Arista. Microsoft and VMware are leaders in the infrastructure software segments.

“As we saw in our analysis of Q1 hyperscale capex, the hyperscale operators are on a spending spree and continue to crank up their investment in data centers, with much of this spending flowing through to the vendors of data center hardware and software,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “Hyperscale operators totally dominate the cloud market, so their ongoing growth bodes well for hardware and software vendors – though ODMs continue to aggressively increase their share of the pie. Our forecasts show that IaaS, PaaS, SaaS and public cloud workloads generally are all going to continue to grow rapidly over the next five years, which will continue to drive ever-increasing levels of spending on data center infrastructure.”

About Synergy Research Group

Synergy provides quarterly market sizing and segmentation data on cloud and related markets, including company revenues by segment and by region. Synergy Research Group (www.srgresearch.com) helps marketing and strategic decision makers around the world via its unique insights and in-depth analytics.

To speak to an analyst or to find out more about how to access Synergy’s market data, please contact Heather Gallo @ hgallo@srgresearch.com or at 775-852-3330 extension 101.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/9652444f-96ed-422a-abbb-cb1939641fbb

Primary Logo


[ Back To Transforming Network Infrastructure's Homepage ]





Click here to share your opinion – Would color of equipment influence your purchasing decision, one way or another?





Featured Blog Entries

Day 4, Cisco Live! - The Wrap

Day 4 was the final day of our first ever Cisco Live! We had a great show, with many great conversations and new connections with existing and potential end users, resellers, partners and job hunters.

Day 3, Cisco Live!

Day 3 of Cisco Live is history! For Fiber Mountain, we continued to enjoy visits from decision makers and influencers who were eager to share their data center and structured cabling challenges.

Day 2, Cisco Live!

Tuesday was Day 2 of Cisco Live for Fiber Mountain and we continued to experience high levels of traffic, with many high value decision makers and influencers visiting our booth. One very interesting difference from most conferences I attend is that there are no titles on anyone's show badges. This allows open conversations without people being pretentious. I think this is a very good idea.

Day 1, Cisco Live!

Fiber Mountain is exhibiting at Cisco Live! In Las Vegas for the first time ever! Our first day was hugely successful from just about any perspective - from quantity and quality of booth visitors to successful meetings with customers.

Industry News