Total revenues for the cloud infrastructure equipment segment reached over $ 60 billion in 2015, with HPE accounting for just over 12%, and Cisco just under. Dell, Microsoft and IBM complete the top five, each controlling about 7% market share.
“There continues to be particularly impressive growth in the public cloud infrastructure market as AWS and other cloud operators are having tremendous success in attracting enterprises to their ever-expanding range of service offerings,” said Jeremy Duke, Synergy Research Group’s founder. “But enterprises too are buying ever-larger volumes of infrastructure to support their private or hybrid cloud deployments. Across the board there is a massive swing away from enterprises running workloads over more traditional and inflexible IT infrastructure.”
Synergy’s research showed between Q4 2014 and Q3 2015 total spend on infrastructure hardware and software to build cloud services exceeded $ 60 billion. Spend on private cloud accounted for more than 50% of these revenues, though public cloud is growing at a faster pace. HPE currently leads the private cloud space, with Cisco in second, however the roles are reversed for the public cloud segment.
While HPE and Cisco remain dominant in the server and networking segments, both companies have been releasing a number of new products in recent months to diversify their offering. Last week, HPE launched its ‘machine-learning-as-a-service’ on Microsoft Azure, which combines 60 API’s to provide machine learning capabilities. While HPE is seemingly capitalizing on the growing ‘as-a-service’ trend, Cisco is focused on its cloud-based collaboration service, Cisco Spark, which was launched with Verizon recently.
Microsoft features in the list due to its position in the server OS and virtualization applications market, where as Dell and IBM have demonstrated strong offerings in a broad number of cloud technology markets. Servers, OS, storage, networking and virtualization software combined accounted for 95% of the Q4 cloud infrastructure market.
While hardware and software to build cloud services revenues exceeded $ 60 billion, other areas of the industry demonstrated stronger growth. Public IaaS/PaaS services had the highest growth rate at 51%, followed by private & hybrid cloud infrastructure services at 45%.
“In many ways 2015 was the year when cloud became mainstream. Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish,” said Duke. “Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future, making this an exciting time for IT vendors and service providers that focus on cloud.”