Dell, HPE, Cisco increase share in Cloud IT infrastructure market

Cloud IT infrastructure products revenue from server, enterprise storage, and Ethernet switch fell 10.2 percent to $14.1 billion in the second quarter of 2019.
Cloud IT vendors Q2 2019
Dell Technologies, HPE, Cisco, Inspur and Lenovo are the top four suppliers in the global Cloud IT vendors in Q2 2019, IDC said.

Dell Technologies, HPE and Cisco have enhanced their market share in the worldwide Cloud IT market.

IDC also lowered its forecast for total spending on cloud IT infrastructure in 2019 to $63.6 billion, down 4.9 percent from last quarter’s forecast and changing from expected growth to a year-over-year decline of 2.1 percent.

Revenue from hardware infrastructure sales to public cloud environments fell 15.1 percent year over year to $9.4 billion. IDC expects spending on the public cloud IT infrastructure to dip 6.7 percent to $42 billion in 2019.

Vendor revenues from private cloud environments rose 1.5 percent year over year reaching $4.6 billion. IDC expects spending in this segment to grow 8.4 percent year over year in 2019.

In 2Q19, cloud IT environments accounted for 48.4 percent of vendor revenues. For the full year 2019, spending on cloud IT infrastructure will remain just below the 50 percent mark at 49.0 percent.

Longer-term, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.

Spending on the three technology segments in cloud IT environments is forecast to deliver growth for Ethernet switches while compute platforms and storage platforms are expected to decline in 2019.

Ethernet switches are expected to grow at 13.1 percent, while spending on storage platforms will decline at 6.8 percent and compute platforms will decline by 2.4 percent. Compute will remain the largest category of spending on cloud IT infrastructure at $33.8 billion.

Sales of IT infrastructure products into traditional (non-cloud) IT environments declined 6.6 percent from a year ago in Q219. For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 5.8 percent, as the technology refresh cycle driving market growth in 2018 is winding down this year.

By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 41.8 percent of total worldwide IT infrastructure spending (down from 52.0 percent in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.