How Cisco, Dell EMC and HPE performed in infrastructure space

Cisco, Dell EMC and HPE shareCanalys Principal Analyst Matthew Ball has revealed the market share of Cisco, Dell EMC and HPE in the global IT infrastructure market in 2017.

Cisco Systems has 20 percent share in the global infrastructure market. Cisco had 22.5 percent share in 2016.

The share of Dell EMC was 15 percent in the infrastructure market. Dell EMC had the same 15 percent share in 2016 as well.

HPE has 14 percent share in the worldwide infrastructure market. HPE had 15.5 percent share in 2016.

Canalys, a leading research firm, said the value of the global IT infrastructure shipments, including servers, storage and networking products, rose 7 percent to $142 billion in 2017 – driven by strong growth in servers.

The main growth factor in the boom in the worldwide infrastructure market was the rising DRAM component costs and increasing demand for higher server specifications resulted in ASPs increasing faster than unit shipments.

Hyperscale cloud service providers’ CXOs decision to expand data centers, and the start of a new enterprise refresh cycle following the launch of the latest Intel and AMD processors, increased server shipment value to $66 billion.

The report said storage spending moved to all-flash and software-defined products. These offset the decline in traditional HDD storage arrays.

IT infrastructure market players in 2017

Cisco 20%
Dell EMC 15%
HPE 14%

IT infrastructure market players in 2016

Cisco 22.5%
HPE 15.5%
Dell EMC 15%

Networking spending grew as investment in data center switching and 11ac Wave 2 wireless LANs for campus and branch environments remained strong.

Ethernet switching market grew 7 percent.

Wireless LANs market increased 9 percent.

Service provider routing increased 1 percent.

Enterprise routing fell 9 percent.

The research report said 2017 was a strong year for the channel selling servers, storage and networking.

The channel dominated infrastructure shipments, collectively representing 74 percent of the worldwide total.

Direct sale grew faster, due to the increasing role of Chinese and Taiwanese ODM server vendors selling large volumes to cloud service providers.

Direct sale accounted for 34 percent of server shipments, compared with 19 percent for storage and 20 percent for networking.

“The capital expenditure planned by the hyperscale cloud service providers in upgrading and expanding existing data centers, as well as increasing their geographic presence, will maintain this trend in 2018,” said Canalys Principal Analyst Matthew Ball.

Cisco, Dell EMC and HPE accounted for 50 percent of total worldwide shipments.

Cisco’s strong dominance in the networking space assisted it maintain its lead of 20 percent in the global infrastructure market. Cisco strategy is to focus on moving its hardware-centric customer base to software and subscriptions to strengthen revenue base.

Dell EMC completed its first year of operations, following the $67 billion merger in 2016, making it a leader in servers and storage. Dell EMC has increased its share of infrastructure shipments to 15 percent. Dell EMC has achieved strong channel presence.

HPE’s share of infrastructure shipments was 14 percent in 2017. HPE, as per its long-term strategy, is shifting its server business focus to higher-value segments, with growth in HCI and HPC. HPE purchased Nimble last year in order to enhance its storage business. HPE is also benefiting from the Aruba acquisition by driving growth in wireless LANs as part of its intelligent edge strategy.

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