Data centre hardware and software spend up by 4%

Data centre hardware and software spend up by 4%

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Worldwide spending on data centre hardware and software grew by 4% from 2019, as a result of a 22% spike in spending on public cloud infrastructure, according to data from Synergy Research Group.

The report found that cloud providers continue to invest in their data centres to satisfy the increasing demand for their services.

Enterprise spending on their own data centre infrastructure dropped 6% from 2019, with each quarter of 2020 being down from the year before.

In terms of market share, ODMs in aggregate account for the largest portion of the public cloud market, with Inspur, Huawei and Dell being the leading individual vendors, all having a similar market share in the year.

In terms of growth, Inspur, Huawei and ODMs were the big winners in the year, Synergy revealed.

The 2020 market leaders in enterprise infrastructure were Microsoft and Dell, followed at a distance by HPE, Cisco and VMware.

“The total data centre equipment market continues to grow steadily and we forecast that it will continue to do so over the next five years. However, 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.

“In the server segment of the market, unit shipments to public cloud providers have already surpassed enterprise volumes. Currently, the value of the enterprise server market is still greater due to higher ASPs, but that too will soon change as public cloud server volumes continue to surge.”


Total data centre infrastructure equipment revenues, including both cloud and non-cloud hardware and software, were $165 billion in 2020, with public cloud infrastructure accounting for 43% of the total.

The main hardware-oriented segments of servers, storage and networking in aggregate accounted for 77% of the data centre infrastructure market. OS, virtualization software, cloud management and network security account for the balance.

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