Data center spending grows 17% to $150 billion in 2018

Spending on data center hardware and software grew 17 percent to $150 billion in 2018, Synergy Research Group said.
Data center spending in 2018
The growth was driven by demand for public cloud services and by a requirement for richer server configurations.

Spending on public cloud infrastructure grew 30 percent, while spending on enterprise data center infrastructure rose 13 percent. Spending on private cloud infrastructure increased 23 percent.

ODMs account for the largest portion of the public cloud market, with Dell EMC being the leading individual vendor, followed by Cisco, HPE and Huawei.

Dell EMC is the 2018 market leader in private cloud, followed by Microsoft, HPE and Cisco.
Dell EMC is the leader in both server and storage revenues, while Cisco is dominant in the networking segment.

Microsoft features heavily in the rankings due to its position in server OS and virtualization applications. HPE, VMware, IBM, Huawei, Lenovo, Inspur and NetApp are the other leading vendors in the market.

50 percent growth in Cloud service revenues, 30 percent rise in enterprise SaaS revenues, 25 percent increase in search/social networking revenues, and 30 percent growth in e-commerce revenues are helping to drive big increases in spending on public cloud infrastructure.

John Dinsdale, chief analyst at Synergy Research Group, said: “We are also seeing some strong growth in enterprise data center infrastructure spending, with the main catalysts being more complex workloads, hybrid cloud requirements, increased server functionality and higher component costs.”

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