18 September 2017
| James Pearce
Spending on data centre infrastructure equipment topped £30 billion in the Q2 2017, driven by public cloud infrastructure, which made up almost a third of all capital expenditure.
Overall, spending on data centre hardware grew just 5%,
according to the figures from Synergy Research Group, despite
strong growth across a number of segments. Spending on public
cloud infrastructure was up 35% in comparison with Q2 2015, the
Private cloud saw revenues grow by 16% in Q2 when compared
with the same period in 2015, although spending on traditional,
non-cloud data centre hardware and software was down by
Cisco was named as the leading individual vendor for public
cloud expenditure, followed by Dell EMC and HPE. Dell EMC was
named as the market leader for private cloud, followed by HPE
and Microsoft, with the latter leading in traditional
Dell EMC leads for storage, Synergy found, while Cisco is
the dominant player across the networking segment. HPE leads in
server revenue, while Microsoft had a strong showing due to its
position in server OS and virtualisation.
"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," said John
Dinsdale, a chief analyst and research director at Synergy
"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."