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Spending on data centers almost at all-time high, says Synergy

Published 16 October 2020

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stuart-crowley
W.media | editor
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Market intelligence firm Synergy Research Group’s new data shows that worldwide spend on data centers saw a 7% uptick in Q2 2020, reaching US$41.4 billion in revenue.

This is thanks to a 25% jump in spending on public cloud infrastructure from Q2 2019, which almost pushed it to an all-time high. But enterprise spending dropped slightly by 3%.

Original design manufacturers (ODMs) of cloud infrastructure dominate the public cloud market share, with Inspur as the leading individual vendor, followed by Dell, Microsoft and Huawei.

Enterprise market share, on the other hand, sees Microsoft as the market leader, followed by Dell, Hewlett Packard Enterprise, Cisco and VMware.

 

 

As predicted, the COVID-19 pandemic was the main driver behind record spending on data center infrastructures.

“In the middle of a global pandemic, spending on data center infrastructure was almost at an all-time high – second only to the fourth quarter of 2019. That speaks volumes about the continued robust growth in both enterprise and consumer cloud services,” said Synergy Research Group’s Chief Analyst, John Dinsdale.

The main hardware-oriented segments of servers, storage and networking in aggregate accounted for 75% of the data center infrastructure market, with OS, virtualisation software, cloud management and network security account making up the other 25%.

By segment, Dell is the leader in 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. Outside of these three, the other leading vendors in the market are HPE, Inspur, Huawei, VMware, Lenovo and IBM.

According to Mr. Dinsdale, China is the breakout player in the market, as its cloud spending jumped almost 35% from Q2 last year. 

Chinese data center operator Chindata’s success in raising over US$500 million for its IPO in the US shows the country’s determination to play a bigger role in the global cloud infrastructure market.

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