Spending on data centre equipment tops $30bn in Q2
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Spending on data centre equipment tops $30bn in Q2

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 firm claims.

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 18%.

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 non-cloud.

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 Research Group. 

“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.”

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