Spending on data center infrastructure has increased 28 percent in Q2 2018 to $38 billion, driven by demand for cloud services and increased prices for servers.
The beneficiaries are the technology vendors supplying public cloud infrastructure. Tech vendors have achieved 54 percent growth in revenues over the period.
Growth for enterprise data center infrastructure has been much lower and spending was in slow decline until the recent spike in server demand and pricing gave vendor revenues a boost.
Private cloud infrastructure spending rose 45 percent since the second quarter of 2016. ODMs in aggregate account for the largest portion of the public cloud market, with Dell EMC, Cisco and HPE leading the market.
The Q2 market leaders in private cloud were Dell EMC, Microsoft and HPE. Dell EMC, Microsoft and HPE led in the non-cloud data center market.
The report said public cloud infrastructure accounts for a third of the total data center infrastructure equipment revenues. Private cloud or cloud-enabled infrastructure accounted for over a third of the total.
Servers, OS, storage, networking and virtualization software combined accounted for 96 percent of the Q2 data center infrastructure market, with the balance comprising network security and management software.
Dell EMC is the leader in both server and storage revenues.
Cisco is dominant in the networking segment.
Microsoft features heavily in the rankings due to its position in server OS and virtualization applications. Other leading vendors in the market are HPE, IBM, VMware, Lenovo, Huawei, Inspur and NetApp.
“We are seeing cloud service revenues continuing to grow by 50 percent per year, enterprise SaaS revenues growing by over 30 percent, search/social networking revenues growing by over 25 percent, and e-commerce revenues growing by over 40 percent — driving big increases in spending on public cloud infrastructure,” said John Dinsdale, chief analyst at Synergy Research Group.
