Spending on IT infrastructure jumps by 13%
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Spending on IT infrastructure jumps by 13%

Enterprise Infrastructure Market Size and Growth 2018.jpg

Vendor revenues for the last four quarters increased by 13% on a year-on-year basis reaching $125 billion across six key enterprise infrastructure segments.

According to this new data from Synergy Research Group data centre servers make up the largest segment of the market as well as being the highest-growth market increasing by 26% due to more highly featured configurations and higher ASPs.

Switches and routers was the second-largest segment and experienced growth of 3%. Hosted and cloud collaboration was the second highest growth segment up 22% taking advantage of spending in on premise collaboration products. Additionally, spending on both network security and WLAN increased at a moderate rate from the previous year.

“After some pretty anaemic growth in the previous years we saw enterprise spending on IT infrastructure pick up at the end of 2017 and continue to grow strongly throughout 2018,” said Jeremy Duke, founder and chief analyst at Synergy Research Group. “Despite the booming demand for public cloud services, 2018 saw strong growth in enterprise spending on private data centre equipment. We also saw the ongoing swing in emphasis away from on premise collaboration products and towards hosted and cloud collaboration solutions. 2018 turned out to be a standout year, but our forecasts do still show continued steady growth over the next five years.”

Other findings show that Cisco remains the dominant enterprise vendor as the market leader in most segments. Across all segments, Cisco market share was 23% over the last four quarters down 2% from the previous quarters. This is due to large and higher growth server segment where Cisco is ranked in fifth place.

Over the other segments, its market share remained relatively the same. HPE was ranked in second place enterprise vendor with a market share of 11% across the six segments. It is also the leader in data centre servers, number two in WLAN and third in switches and routers. After Cisco and HPE, other vendors ranked second in the segments are Dell EMC for enterprise data centre servers, Huawei for switches and routers, Microsoft for collaboration and Check Point for network security.

Other major vendors that have experienced high growth rates in 2018 include Lenovo, Inspur, twilio, RingCentral, Ubiquiti and Palo Alto Networks.

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