& cplSiteName &

Infrastructure Spending Is Booming

Mitch Wagner
3/2/2018
50%
50%

The world's appetite for data center and server infrastructure seems insatiable, reflected in separate research reports released this week.

Hyperscale operators spent $22 billion on capex in the fourth quarter, and nearly $75 billion for 2017 overall, up 19% year-over-year, according to a report from Synergy Research Group Inc.

"Much of that hyperscale capex goes towards building and expanding huge data centers, which have now grown in number to 400. The top five spenders are Google, Microsoft, Amazon, Apple and Facebook, which in aggregate account for over 70% of Q4 hyperscale capex," according to a statement this week from Synergy. (See Hyperscale Data Centers Continued to Grow in 2017.)

Photo: Datacenter work, by Leonardo Rizzi. (CC BY-SA 2.0)
Photo: Datacenter work, by Leonardo Rizzi. (CC BY-SA 2.0)

Capex comprised just over 7% of overall revenues for hyperscale operators, varying company to company from a low of 2% to a high of 17%, the researchers say.

To compile the report, researchers looked at capex and data center footprints for 24 of the world's major cloud and Internet service firms, including the biggest infrastructure, platform and software as a service (IaaS, PaaS and SaaS) platforms, as well as search, social, networking and ecommerce.

Capex spending is a big reason why other companies fail to compete with the big hyperscale providers, John Dinsdale, Synergy chief analyst and research director, said in the company's statement.

"The capex analysis emphasizes the biggest reason why those cloud providers are so difficult to challenge," he said. "Can you afford to pump at least a billion dollars a quarter into your data center capex budget? If you can't, then your ability to meaningfully compete with the market leaders is severely limited. Of course factors other than capex are at play, but the basic financial table stakes are enormous."

Meanwhile, revenue in the worldwide server market increased 26.4% year-over-year to $20.7 billion in the fourth quarter of 2017, with the server market continuing to gain momentum, according to a report from IDC released this week.

"While demand from cloud service providers has propped up overall market performance, other areas of the server market continue to show growth now as well. Worldwide server shipments increased 10.8% year over year to 2.84 million units in 4Q17," according to a statement from IDC.

Of individual vendors, HPE and the New H3C Group were tied for first place in revenue, at $3.8 billion each, and market share, at $18.4%. Dell came in second at $3.6 billion and 17.5%, with IBM third at $2.7 billion and 13%.

After that, Lenovo had $1 billion and 5.3%, Cisco at $1 billion and 5.1%.

However, the top two market share categories were ODM Direct, at $4.2 billion or 20.6%, and others, at $4.2 billion or 20.2%.

Related posts:

— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Follow me on Facebook Editor, Enterprise Cloud News

(3)  | 
Comment  | 
Print  | 
Oldest First  |  Newest First  |  Threaded View        ADD A COMMENT
juxemip
50%
50%
juxemip,
User Rank: Light Beer
7/27/2018 | 12:36:25 PM
Nice
Reading of the line has been done for the fulfillment of the goals for the humans. The sensitive use of the essayshark review is approved for the flow of the products for the humans in life.
More Blogs from Wagner’s Ring
IBM and Cisco are working with Europe's largest port to reduce fuel consumption and other costs and improve safety.
In which we receive an alarming email from Oracle.
SD-WAN is about more than saving money – it also provides application delivery, insights and reliability. Find out more in this podcast sponsored by Citrix.
Platform is designed to enable enterprises to build big data analytics apps that move easily between public and private clouds.
Buying Evident.io extends Palo Alto's portfolio with API-based security capabilities and compliance automation.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
T-Mobile to Play the Customer Care Card With Layer3 TV
Jeff Baumgartner, Senior Editor, Light Reading, 8/15/2018
Australia Could Open 5G Door to Huawei
Robert Clark, 8/16/2018
Video Navigation Gets an AI Assist
Jeff Baumgartner, Senior Editor, Light Reading, 8/16/2018
Eurobites: Deutsche Telekom Pulls Out of Iran
Iain Morris, International Editor, 8/17/2018
Animals with Phones
When Your Cat Hijacks Your Tech Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed