& cplSiteName &

Cisco Leads $113B Data Center Gear Market – Report

Scott Ferguson
1/4/2018
50%
50%

The market for traditional data center infrastructure continued to grow during the past 12 months, despite the increasing popularity of public cloud services, with enterprises spending about $113 billion on servers, switches, routers, WLAN and other gear in 2017.

Overall, the data center infrastructure market grew about 3% between 2016 and 2017, according to figures released this week from Synergy Research. The report measures six specific parts of the infrastructure market: servers, switches and routers, hosted and cloud collaboration, on-premises collaboration, network security and WLAN.

The big winner of the past 12 months was Cisco Systems Inc. (Nasdaq: CSCO), which led four of the six segments, and controlled about 26% of the overall data center infrastructure market. Hewlett Packard Enterprise placed second with an 11% market share.

However, the Synergy report finds that public cloud is steadily eroding this traditional, on-premises market, and that the fastest-growing segment -- hosted and cloud collaboration -- is specifically tied into the growing importance of services delivered to enterprises.

"The focus of that spending is changing, however, with a growing emphasis on hosted solutions, subscription-based business models and emerging technologies," Synergy's founder and chief analyst, Jeremy Duke, wrote in the report. "Those changes will continue to present challenges for incumbent vendors and opportunities for new market entrants."

While Cisco has started to move away from selling traditional networking gear toward focusing more on other areas, such as security and software, the company still makes much of its money from traditional data center infrastructure. (See Cisco's Q1 Beats Wall Street Expectations.)


Keep up with the latest enterprise cloud news and insights. Sign up for the weekly Enterprise Cloud News newsletter.


In the Synergy report, Cisco was the leading vendor for switches and routers, on-premises collaboration, network security and WLAN.

While HPE was second to Cisco in this market, the company only led the server market in 2017, but came in second in WLAN and third in routers and switches. Microsoft Corp. (Nasdaq: MSFT), was the top vendor for hosted and cloud collaboration systems.

Other top companies in this market include Dell EMC in servers, Huawei Technologies Co. Ltd. in switches and routers and Check Point Software Technologies Ltd. (Nasdaq: CHKP) in network security. Synergy also noted that Super Micro Computer Inc. , Arista Networks Inc. and RingCentral Inc. also posted high growth rates.

Related posts:

— Scott Ferguson, Editor, Enterprise Cloud News. Follow him on Twitter @sferguson_LR.

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Scott Ferguson
From its roots in industrial farm machinery and other equipment, John Deere has always looked for a technological edge. About 20 years ago, it was GPS and then 4G LTE. Now it's turning its attention to AI, machine learning and IoT.
Artificial intelligence and automation will become more integral to the enterprise, and 90% of all apps will have integrated AI capabilities by 2020, according to Oracle CEO Mark Hurd.
IBM is now offering access to Nvidia's Tesla V100 GPUs through its cloud offerings to help accelerate AI, HPC and other high-throughput workloads.
CIO Rhonda Gass is spearheading an effort to bring more automation and IoT to the factories making Stanley Black & Decker tools and other equipment.
Workday is looking to build out its machine learning and artificial intelligence capabilities with the acquisition of startup SkipFlag.
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