Translated by
2019/02/13 17:28:54

Solutions for cloud infrastructures (world market)

Servers, storage systems and network equipment which are used in data centers for work of cloud services belong to cloud infrastructure. Also here public services IaaS, PaaS and the managed private clouds on the basis of which it is possible to unroll cloud infrastructure without purchase of the equipment belong

Content

2018

The market of services for cloud infrastructure reached $80 billion — Canalys

According to Canalys analytical company, the volume of global market of the services used for deployment of cloud infrastructure in 2018 reached record $80 billion against $55 billion the previous year. Thus, growth by 45.6% took place. Some leaders show higher dynamics, said in the research published in February, 2019.

Amazon at which income in the market in 2018 jumped up almost half remains the largest supplier of cloud services. More in more detail about alignment of forces it is possible to learn from the table below.

The largest suppliers of services for deployment of cloud infrastructure given to Canalys
The largest suppliers of services for deployment of cloud infrastructure given to Canalys
«
Services provide the principal components necessary for support of the corporate projects of digital transformation connected with development of new opportunities for clients, deployment of Internet of Things for conversion of processes for cloud infrastructure, uses of Big Data and analytics for receiving are more better than analysis results and also implementation of machine learning and artificial intelligence for automation — the analyst of Canalys Matthew Ball noted.
»

According to experts, partners play more and more significant role on the cloud markets. It is caused by need of understanding of customer requirements, the recommendations of services, deployment and integration and also simplification of a payment system and management of several cloud services.

The senior analyst of Canalys Alastair Edwards says that cloud providers stake on development of affiliate programs to involve in cooperation not only system integrators. The network of partners is necessary for work with clients in a segment of small and medium business, the expert considers. Canalys expects growth of a share of income which suppliers of cloud services will gain from partners in 2019.[1]

Expenses on services for cloud infrastructure grew by 48% to $70 billion — Synergy

In 2018 the size of the market of services for deployment of cloud infrastructure reached nearly $70 billion, having increased by 48% of rather previous year. At the same time the leading five including the companies Amazon Microsoft Google, IBM and Alibaba, showed stronger cumulative rise — for 60%. On February 5, 2019 analysts of Synergy Research Group reported about it.

It is about public services IaaS, PaaS and also the managed private clouds. The greatest expenses fall on the solutions IaaS and PaaS. Alignment of forces among the largest suppliers of services for work of cloud infrastructure looks as follows:

  • Amazon (a market share at the end of 2018 — 34%);
  • Microsoft (15%);
  • Google (7%);
  • IBM (7%);
  • Alibaba (5%).

The largest suppliers of services for deployment of cloud infrastructure
The largest suppliers of services for deployment of cloud infrastructure

The top analyst of Synergy Research John Dinsdale reported that the 2018th appeared strong year for the cloud market as rates of its growth unexpectedly increased. In the years ahead dynamics will steadily decrease as market size reaches high values, the expert added.

In a research it is said that market leaders of services for cloud infrastructure strengthen positions at the expense of less large players. The joint share of the last in 2018 decreased on the 5th percent point. Many small suppliers still show the growing income, however it is heavy to them to resist to IT giant.

Amazon holds a palm and still advances on revenue of four closest persecutors combined. At this Microsoft, Google and Alibaba  grow not only quicker than Amazon, but also all considered market.

Analysts also select IBM whose business differs from competitors: the American corporation saves the dominating position in a segment of services of deployment of private clouds.[2]

Growth by 37.2% to $65.2 billion is IDC

On January 10, 2019 analysts of International Data Corporation (IDC)  provided results of a research of the market of the equipment (servers storage systemsEthernet-switches) used for deployment of cloud services. In 2018 sales of such products reached $65.2 billion, having risen by 37.2% of rather previous year.

Since 2013 when IDC began to monitor projects of deployment of IT infrastructures in different environments, public clouds were always the main area of expenses in the considered market. In 2018 this segment grew by 44.7% and occupied 68.8% of investments into cloud infrastructures. Sales of the IT equipment for the private cloud systems jumped by 23.3%.[3]

Slightly less than a half (47.4%) of the total costs of IT infrastructure in 2018 fell to the share of the cloud equipment. In the third quarter the indicator for the first time passed for 50% and reached 50.9%.

All types of the considered equipment used for functioning of cloud services showed two-digit sales growth in 2018. For example, the volume of a segment of server platforms rose by 59.1%, and implementation of DWH and switches jumped by 20.4% and 18.5% respectively.

Do not bring alignment of forces among equipment manufacturers based on which cloud services, for 2018 work into IDC. In a research only data for the third quarter are specified (see below).

The cloud industry is fast-growing what you will not tell about the market of the equipment intended for traditional IT infrastructures. However, in 2018 this market showed 12.3 percent rise though in the first half of the year sank for 14.8%. Revival happened thanks to approach of a turnover cycle of technologies which will weaken in 2019. It is predicted that by 2022 the equipment will fall 42.4% of global expenses on IT infrastructure against 52.6% on not cloud in the 2018th.

2017

Growth in sales of software for management of cloud environments for 18% to $4.2 billion

In October, 2018  results of a research of the world market of the software used for management of cloud environments were published by analysts of International Data Corporation (IDC). The leader does not change five years here.

In 2017 sales of software of management of clouds on a global scale reached $4.2 billion that is 18% more, than the previous year. The first place still saves VMware at which income in the considered market rose by 20.7% to $906.7 million that corresponds to a 21.7 percent share.

The largest software makers for management of cloud environments, data of IDC for 2017
The largest software makers for management of cloud environments, data of IDC for 2017

On the second position Microsoft with a market share in the amount of 14.1% and sales in $587.9 million was located. Top three was closed by IBM which completed 2017, controlling 9.2% of the world market of software for management of cloud environments.

VMware not only is in the lead in the market the fifth year in a row, but also grows quicker than main competitors (+20.7% in 2017). For example, implementation of software for management of clouds at Microsoft rose by 18.8%, at IBM — for 4.3%. Cisco even taking into account merger of AppDynamics showed 10.8 percent rise, and HPE endured recession for 28.3% at all.

In addition to VMware, the most fast-growing vendors in the market New Relic were among Splunk Dynatrace, Datadog and Amazon Web Services (AWS). Besides, IDC selects the companies ServiceNow and Oracle, the showing considerable rise regarding distribution of the unified SaaS- platforms for management of services. The volume of such segment in general at the end of 2018 increased by 25% whereas sales of local solutions increased slightly less — by 18%.

The analyst of IDC Stephen Elliot says that growth of the market of solutions for management of cloud environments is promoted by such factor as requirement of the companies for performance management, capacities and expenses and also in automation of transactions by means of the hybrid and multicloud systems.[4]


Growth by 21% — data of IDC

In 2017 the volume of the world market of the equipment (servers storage systems, Ethernet-switches) for deployment of cloud infrastructures reached $46.5 billion, having increased by 20.9% concerning the 2016th. Preliminary data of analysts demonstrate to it International Data Corporation (IDC).

About 65.3% of the specified amount were the share of purchases of the hardware for data centers in which public clouds are started. This segment showed growth by 26.2%.

Sales of solutions for creation of private cloud environments in DPCs of the third-party companies increased by 12.7% and made 13% in a total amount of the considered market. The Segment of the private clouds developed on objects of customers showed 11.5 percent rise.

Forecast for the market of the equipment for cloud services, data of IDC
Forecast for the market of the equipment for cloud services, data of IDC

According to the experts, equipment expenses, used not for cloud, and for local infrastructures, in 2017 decreased by 2.6%, but made 57.2% of the general extent of costs of the companies for servers, DWH and switches. In 2016 this share indicator was higher — 62.4%. Falling of a share of the equipment for traditional IT infrastructures was the strongest for the previous three years.

Demand for cloud solutions increases in all regions and technology segments. In 2017 sales of switches and ADP equipment for work of clouds increased more than by 22%. Slightly more weakly implementation of storages — increased by 19.2%.

«
In process of world implementation of public and private cloud services instead of traditional local IT infrastructures the total costs of the market of servers, DWH and network equipment will follow this trend. The industry approaches a point when cloud projects occupy the most part of costs on IT infrastructures that will become the important milestone showing advantages of IT services — the analyst of IDC Natalya Ezhkova reported.[5]
»

2016

Market growth less than for 10%

On April 6, 2017 analysts of International Data Corporation (IDC) published short results of a research of the world market of cloud appartny infrastructure. Growth in sales of the equipment for the first time fell lower than 10%.

In 2016 expenses of the companies and data centers on servers, storage systems and Ethernet-switches made $32.6 billion that is 9.2% less concerning the 2015th.

The largest equipment manufacturers for cloud data centers, data of IDC
The largest equipment manufacturers for cloud data centers, data of IDC

According to the analyst of IDC of Cuba Kuba Stolarski, the market of cloud IT infrastructure began to grow less than 10 percent rates because of freezing of investments from hyper scalable data centers.

«
Upgrade of networks still remains in the center of attention of projects on deployment of public clouds as capacity of networks became the weakest link in cloud data centers. After the pause made by some operators of hyper scalable DPCs, deployment and updating of data centers will be resumed during 2017, and in projects the new equipment constructed generally on architecture of Intel Skylake will be used.
»

In the report of IDC it is said that network equipment remains the most fast-growing segment of the market of cloud IT infrastructure. For example, in October-December, 2016 sales of the network equipment for public clouds rose by 30%, and growth was measured in a segment of private clouds by nearly 53%.

The largest equipment manufacturer for cloud data centers still is Dell Technologies which share in the market at the end of 2016 made 17.6% (in revenue). Near the leader Hewlett Packard Enterprise with a 16.3 percent indicator was located. The three of the best included Cisco (11.6%). The greatest growth rates of revenue (62.3%) in 2016 were shown by Huawei which share was measured by 3.7%.

HPE, Cisco and Dell divide leadership

In March, 2017 analysts of Synergy Research Group provided results of a research of the world market of cloud infrastructure. Leadership is divided at once by several companies.

By Synergy Research estimates, in 2016 global sales of the equipment (storage systems, the network equipment, servers) and the software (operating systems, means of virtualization) used in data centers for work of cloud services reached $70 billion. More than 27% of these expenses were the share of a final calendar quarter.

Dynamics of change of shares of the companies in the market of cloud infrastructure, data of Synergy Research
Dynamics of change of shares of the companies in the market of cloud infrastructure, data of Synergy Research

Growth rates of implementation of IT solutions for start of private clouds decrease whereas in a segment of public clouds the high dynamics measured by two-digit indicators is observed.

«
While expenses on cloud services and infrastructure are already huge, transfer of workloads of the companies to clouds still remains at early stages. It means that success in the market of cloud infrastructure is important for IT vendors, and they will fight long and persistently for increase in shares in the market — the analyst of Synergy Research John Dinsdale notes.
»

By the end of 2016 at once three companies are in the lead in the world market of cloud infrastructure: Hewlett Packard Enterprise (HPE), Cisco and Dell Technologies. The last entered into group of leaders as a result of merger of EMC.

By estimates of researchers, HPE, Cisco and Dell have in an asset approximately 11.5% of world sales of the equipment and software for cloud services. Approximately the same share contract (ODM) producers thanks to the remaining heavy expenses of operators of hyper scalable data centers on the equipment developed by the ODM companies jointly locate. In the market Microsoft and IBM are also among the leading players. The first of them is in the lead in the sector of server operating systems.[6]

2015: Growth of the market by 22%, HPE - the leader

In April, 2016 the IDC analytical company published results of a research of the world market of cloud infrastructure. Its volume grew by 22%, and leadership on it still saves Hewlett-Packard Enterprise (HPE).

According to estimates of experts, in 2015 expenses of the companies on purchase of the servers, storage systems and Ethernet switches used in data centers for deployment of cloud services made nearly $29 billion against $23.8 billion the previous year. The share of sales of cloud solutions in the total amount of equipment costs for corporate IT infrastructure in a year increased from 28.6% to 32.2%.

The size of the market of the equipment for cloud services grew by 22%
The size of the market of the equipment for cloud services grew by 22%

In 2015 about 19% of sale of the cloud equipment were the share of solutions for public clouds. The share of a segment of private clouds made 11.3%.

In 2015 consolidated revenues of vendors from sales of servers, the separate cloud solutions used for start, rose by 23%, and the volume of a segment of a switching equipment for public clouds jumped by 36.6%.

«
For many commercial and the IT state organizations is not key business, but an implementer of their main objectives — the director of a research of the market of storage systems of IDC Natalya Ezhkova says. — Expansion of the range of cloud offers provides these companies with new opportunities to focus on profile competences, using advantages of flexible IT services.
»

The largest producers of cloud IT infrastructure given for the fourth quarter 2015
The largest producers of cloud IT infrastructure given for the fourth quarter 2015

Analysts predict that in 2016 the volume of global market of cloud infrastructure will grow by 19% in comparison with the 2015th and will reach $38.2 billion. In 2020 flows on this equipment will be measured by $57.8 billion, and annual average growth rates of the market — 12.5%.

Data for 2015
Data for 2015

In 2015 the group of market leaders of the cloud equipment remained the same. HPE won first place with a 15.8 percent share, and Dell (10.2%) and Cisco (9.7%) were located with a trace.[7]

2014

Revenues of EMC from solutions for DPCs flew up on a third. HP recedes

On April 16, 2015 the IDC analytical company published results of a research of global market of cloud infrastructures. Its volume in 2014 grew by 18.7%, and leadership of HP weakened.[8]

As reported in the regular report of IDC Worldwide Quarterly Cloud IT Infrastructure Tracker, in 2014 sales of the servers, storage systems and Ethernet switches purchased for deployment of cloud infrastructures made $26.4 billion against $22.3 billion the previous year.

Equipment expenses for public clouds increased by 17.5%, having reached $16.5 billion. In a segment of private cloud services sale of the equipment rose by 20.7% to $10 billion.

"Transition to cloud infrastructures and architecture of data management in corporate DPCs continues to accelerate. At the same time expansion of infrastructures of public clouds in data centers of service providers is stronger growth factor of IT expenses around the world", – the analyst of IDC Richard Villars reported.

According to experts, in the fourth quarter 2014 world costs on the equipment for start of public and private cloud services made 30% of total investments of the companies into IT infrastructures. The previous year this share indicator was measured by 27%.

As Richard Villars considers, the key driver of market growth of cloud infrastructures are the services of Internet of Things requiring that level of flexibility and scalability which is provided by only cloud solutions.

In 2014 the three of the largest decision makers for cloud infrastructures did not undergo changes, but positions of the leader of HP weakened. Revenue of the company in the considered market grew by 6.3% to $3.7 billion that corresponds to 15.7% on global sales of the cloud equipment against 17.4% the previous year.

Vendor

Revenue of 2014 billion dollars.

Share of 2014

Revenue of 2013 billion dollars.

Share of 2013

Growth of revenue in 2014

1. HP

$3,7

15,7%

$3,5

17,4%

6,3%

2. Dell

$2,6

10,7%

$2,4

11,8%

7,2%

2. Cisco

$2,1

8,7%

$1,7

8,5%

21,2%

4. EMC

$1,9

8,0%

$1,4

7,1%

34,3%

5. IBM

$1,7

7,3%

$2,2

10,7%

-18,9%*

ODM

$6,6

27,8%

$4,8

23,9%

37,3%

Others

$5,2

21,7%

$4,2

20,7%

4,7%

 

 

 

 

 

 

The general

$23,9

100%

$20,2

100%

17,9%

The largest equipment manufacturers for cloud infrastructures, data of IDC for 2014.

Decrease in a market share of HP is connected with activity of competitors. For example, Cisco and EMC in 2014 increased sale of the equipment for cloud infrastructures by 21.2% and 34.3%. It allowed the companies to approach Dell, taking the second place in the list of vendors.

Microsoft was included into the three of the largest suppliers of cloud infrastructures

On March 12, 2015 the Synergy Research Group analytical company published the research report on the world market of solutions for deployment and service of cloud infrastructures. Experts carry servers, network and computing platforms and also data storage resources to these products.[9]

By estimates of analysts, in the fourth quarter 2014 of sale of the equipment and software for cloud infrastructures on a global scale made more than $13 billion that is 9% more, than according to the results of the last three months 2013.

Leadership in the considered market is saved by Cisco and HP which cumulative share is measured by 27%. However year on year this indicator decreased as sales growth at these companies was lower, than on average in the market.

Microsoft was included into the three of the largest suppliers of cloud infrastructures

Microsoft was included into the three of the largest suppliers of cloud infrastructures

Cisco is the largest producer in a segment of public cloud infrastructures whereas HP wins first place on delivering solutions for private clouds.

The general domination of Cisco is in many respects connected with the fact that there is practically no company sales of network equipment, equal in terms of the size. Besides, the vendor promptly strengthens positions in global market of servers where the share of Cisco grew to 5.3% in 2014 (data of IDC).

According to Synergy Research, the HP corporation is in the lead on deliveries of cloud servers and also is a large supplier of disk storages and the growing competitor of Cisco in the market of network equipment.

Microsoft holds a palm among developers of server operating systems and enters into group of leaders in the market of technologies of virtualization. In October-December, 2014 the American corporation was included into the three of the largest solution providers for deployment and service of cloud infrastructure, according to analysts of Synergy Research, having left behind Dell and IBM.

The last, It should be noted, was a market leader at the end of 2012, however in two years lost the positions. The major role in it was played by sale of a part of server business of Lenovo company which thanks to the transaction climbed up the seventh place in the list of equipment manufacturers for clouds.

2013: Cisco bypasses HP and IBM in the market of the equipment for cloud solutions

At the beginning of 2013 Cisco it was succeeded to bypass HP also IBM on a share of proceeds from sales of the equipment for cloud solutions in the general revenue breakdown and this with the fact that the strongest players in the "cloud" market are other vendors. However, as it appears from the report of Synergy Research Group published in June, 2013 in the first quarter 2013 Cisco Systems earned 15% from $9 billion obtained for these three months from cloud computing.

For comparison, the share of the equipment for cloud solutions in total revenue in the first quarter at IBM and HP made 2013 14% respectively, Dell has 9%, EMC have 7%, VMWare has 4%, NetApp and Oracle have 4% and 3% respectively, the analyst of Synergy Research Group John Dinsdale said.

Market of the equipment for cloud computing, the first quarter 2013


Synergy Research Group, 2013

Nevertheless, experts warn, Cisco will be quite complex to save leadership in this segment as the company is in many respects obliged by the take-off at the beginning of 2013 to weak results which showed server divisions of HP and IBM.

However, analysts determined also one more interesting fact: 30% of expenses on the "cloud" equipment in general pass "pockets" of megavendors and go to smaller suppliers. All because the large Internet companies, such as Google, Facebook, Rackspace and others prefer to buy not ready servers, and to create own, agreeing directly with component manufacturers.

According to earlier published forecasts of IHS iSuppli, deliveries of cloud servers will reach 875 thousand units in 2012, having increased by 35% in comparison with 2011 and almost twice in comparison with 2010. Experts expect high growth rates ranging from 23% up to 30% during each of the next three years up to 2015 when the total amount of deliveries of cloud servers reaches 1.8 million units. Thus, cloud servers will make the increasing part from the total number of servers whose deliveries will grow from a little more than 5% of the market in 2010 to 15% in 2015, assume in IHS iSuppli.

See Also

Notes