New data from the Synergy Research Group’s latest research, hyperscale operators accounted for 33% of all spending on data center hardware and software in the first three quarters of 2019. Hyperscale operators include the world’s largest providers in the field of IaaS, PaaS, SaaS, search, social networking and e-commerce. According to the research, total data center infrastructure equipment revenues, including both cloud and non-cloud, hardware and software, were $38 billion in Q3.
Dell EMC and Cisco
Dell EMC is the leader in both server and storage revenues, while Cisco is dominant in the networking segment. Due to their leadership positions in server OS and virtualization applications, Microsoft and VMware feature heavily in the vendor rankings. Other leading vendors in the market are HPE, Huawei, Inspur, and Lenovo.
John Dinsdale, a Chief Analyst at Synergy Research Group said:
“We are seeing very different scenarios play out in terms of data center spending by hyperscale operators and enterprises. On the one hand revenues at the hyperscale operators continue to grow strongly, driving increased demand for data centers and data center hardware. There is an ever-increasing number of hyperscale data centers, many of which continue to be expanded. Those huge data centers are crammed full of servers and other hardware which are on a frequent refresh cycle. On the other hand we see a continued decline in the volume of servers being bought by enterprises. The impact of those declines is balanced by steady increases in server average selling prices, as IT operations demand ever-more sophisticated server configurations, but overall spending by enterprises remains almost flat. These trends will continue into the future.”