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Worldwide spend on data centre sees 2% increase

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Worldwide spend on data centre hardware and software has increased by 2% from the third quarter of 2019, caused by a 21% jump in spending on public cloud infrastructure, according to new Q3 data from Synergy Research Group.

Cloud providers continue to invest heavily in their data centres to satisfy the ever-increasing demand for their services.

The research group found that enterprise spending on their own data centre infrastructure dropped 8% from last year, the third consecutive quarter to feature a substantial decline.

In terms of market share, ODMs in aggregate account for the largest portion of the public cloud market, with Huawei, Dell and Inspur jostling for position to be the leading individual vendor.

The Q3 market leaders in enterprise infrastructure were Dell and Microsoft, followed at a distance by HPE, Cisco and VMware.

“The total data centre equipment market is in a reasonably steady state, with growth over the last six quarters averaging 2%, but the mix of spending by public cloud providers and enterprises continues to shift substantially in favour of cloud,” said John Dinsdale, a Chief Analyst at Synergy Research Group.

“The cloud provider share of the total has increased by around two percentage points in each of the last three quarters, which represents a fairly dramatic change in such a massive market.

“The shift towards cloud was happening prior to that, but at a much more gradual pace. It almost goes without saying that COVID-19 has been a catalyst behind that change in trajectory.”

Total data centre infrastructure equipment revenues, including both cloud and non-cloud hardware and software, were $40.5 billion in Q3, with public cloud infrastructure accounting for 43% of the total.

The main hardware-oriented segments of servers, storage and networking in aggregate accounted for 76% of the data centre infrastructure market, according to the data, and OS, virtualization software, cloud management and network security account for the balance.

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