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Data center equipment revenue grew 2% to $40.5 bn

Total data center infrastructure equipment revenues, including both cloud and non-cloud hardware and software, rose 2 percent to $40.5 billion in Q3 2020.
data center infrastructure equipment revenue Q3 2020Public cloud infrastructure accounts for 43 percent of the total data center infrastructure equipment revenue. The main hardware-oriented segments of servers, storage and networking accounted for 76 percent of the data center infrastructure market, Synergy Research Group said.

OS, virtualization software, cloud management and network security account for the balance 24 percent.

Dell is the leader in server and storage business that support data center infrastructure equipment.

Cisco is dominant in the networking segment of data center infrastructure equipment.

Microsoft features heavily in the rankings due to its position in server OS and virtualization applications. The other leading technology vendors in the data center infrastructure equipment market include HPE, Huawei, Inspur, VMware, Lenovo and IBM.

Public cloud infrastructure spending rose 21 percent as Cloud providers made investment in their data centers to satisfy the increasing demand for their services.

Enterprise spending on their own data center infrastructure dropped 8 percent from last year, the third consecutive quarter to feature a substantial decline.

ODMs in aggregate account for the largest portion of the public cloud market, with Huawei, Dell and Inspur jostling for position to be the leading individual vendor.

“The cloud provider share of the total has increased by around two percentage points in each of the last three quarters, which represents a fairly dramatic change in such a massive market. The shift towards cloud was happening prior to that, but at a much more gradual pace,” said John Dinsdale, chief analyst at Synergy Research Group.

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