The market for enterprise data centers is growing and being led by HPE, Cisco and of course Microsoft. A new report released by researchers for the Synergy Research Group, has attributed the success to large-scale adoption of public cloud services.
The private cloud is expected to bring changes within investment patterns in the enterprise sections also. The report showed HPE, Cisco, and Microsoft continuing to lead their particular segments of the data center market.
The Data Center Market
Three main data center infrastructure market segments are noted in the report as:
- Enterprise data center hardware
- Service provider data center hardware
- Data center software
HPE leads in the enterprise hardware area with a 24% worldwide market share over Dell and Cisco, each with just over 10% of the market. The company has seen a growth trend in its share of the enterprise market
In the service provider hardware market, Cisco is the leader with a 13% share, followed by HPE and Dell. It leads in data center networking and has a rapidly growing server business
The software area is the smallest of the three segments, but is controlled by Microsoft with almost 70% of the market share. Its nearest competitor is VMware with slightly under 20% of the market. VMware is part of the EMC company, recently purchased by Dell.
Dell, with a strong showing in both enterprise and service provider hardware, also reaped the benefits of the data center market.
Total spending on data center infrastructure reached $29 billion for the quarter, an increase of 3% on the year to year. The largest area of growth was the service provider hardware, which grew by over 20%. The largest single product segment is rack servers with a 34% share.
- Server operating systems
- Network security
- virtualization software
Are all included in the data center infrastructure report.
Data Centers and Cloud Services
Jeremy Duke, Synergy Research Group’s founder and Chief Analyst, notes that:
“Data centers are the foundation of cloud services and this has driven annual spending on data center networking, compute and storage toward the $120 billion mark.”
Good news for the companies involved in the growing markets.