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Public cloud infrastructure spending keeps surging in Q1 2018 - Synergy Research

Public cloud infrastructure spending keeps surging in Q1 2018 - Synergy Research

Total public cloud infrastructure revenues, including hardware and software, has crossed over the USD 10 billion per quarter milestone in Q3 of last year and are now comfortably over USD 11 billion.

Synergy Research Group has conducted research on public cloud spending in Q1 2018. The research observed that spending on infrastructure hardware and software continues to surge, growing 32% from the first quarter of 2017 after an unusually strong start to the year. This is against the usual trend when first-quarter witnesses steep drop after the strong fourth quarter in previous year. In Q1 2018, first quarter spending was down just 2% from Q4. The year-on-year growth has typically been in the 10-20% range for past nine years, according to a new data released by Synergy Research Group.

Total public cloud infrastructure revenues, including hardware and software, passed the $10 billion per quarter milestone in Q3 of last year and are now comfortably over $11 billion. Microsoft and VMware are leaders in the infrastructure software segments. ODMs dominate the market with 30 percent of total revenue and also dominate server and storage hardware shipments, followed by Dell EMC, HPE, and Cisco. The next highest ranked vendors in Q1 were Microsoft, Huawei, and VMware. Cisco has a clear lead in networking, despite the continued strong growth of Arista. 

Servers, OS, storage, networking and virtualization software combined accounted for 95% of the Q1 public cloud infrastructure market. The remaining 5% of market share is with cloud security and cloud management.

Chief Analyst and Research Director at Synergy Research Group, John Dinsdale said “As we saw in our analysis of Q1 hyperscale capex, the hyperscale operators are on a spending spree and continue to crank up their investment in data centers, with much of this spending flowing through to the vendors of data center hardware and software. Our forecasts show that IaaS, PaaS, SaaS and public cloud workloads generally are all going to continue to grow rapidly over the next five years, which will continue to drive ever-increasing levels of spending on data center infrastructure,".


This post is subject to the original announcement.


PC: Synergy Research

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Mandar is a seasoned software professional & Fintech, Cloud, IoT, and Blockchain enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about Fintech, Cloud, IoT, AI and Blockchain, and the effects they will have economically and socially in the future.

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