[April 06, 2017] |
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Worldwide Cloud IT Infrastructure Spend Grew 9.2% to $32.6 Billion in 2016, According to IDC
According to the International Data Corporation (IDC)
Worldwide
Quarterly Cloud IT Infrastructure Tracker, vendor revenue from sales
of infrastructure products (server, storage, and Ethernet switch) for
cloud IT, including public and private cloud, grew by 9.2% year over
year to $32.6 billion in 2016, with vendor revenue for the fourth
quarter (4Q16) growing at 7.3% to $9.2 billion.
Cloud IT infrastructure sales as a share of overall worldwide IT
spending climbed to 37.2% in 4Q16, up from 33.4% a year ago. Revenue
from infrastructure sales to private cloud grew by 10.2% to $3.8
billion, and to public cloud by 5.3% to $5.4 billion. In comparison,
revenue in the traditional (non-cloud) IT infrastructure segment
decreased 9.0% year over year in the fourth quarter. Private cloud
infrastructure growth was led by Ethernet switch at 52.7% year-over-year
growth, followed by server at 9.3%, and storage at 3.6%. Public cloud
growth was also led by Ethernet switch at 30.0% year-over-year growth,
followed by server at 2.4% and a 2.1% decline in storage. In traditional
IT deployments, storage declined the most (10.8% year over year), with
Ethernet switch and server declining 3.4% and 9.0%, respectively.
"Growth slowed to single digits in 2016 in the cloud IT infrastructure
market as hyperscale cloud datacenter growth continued its pause," said Kuba
Stolarski, research director for Computing Platforms at IDC.
"Network upgrades continue to be the focus of public cloud deployments,
as network bandwidth has become by far the largest bottleneck in cloud
datacenters. After some delays for a few hyperscalers, datacenter
buildouts and refresh are expected to accelerate throughout 2017, built
on newer generation hardware, primarily using Intel's (News - Alert) Skylake
architecture."
From a regional perspective, vendor revenue from cloud IT infrastructure
sales grew fastest in Japan at 42.3% year over year in 4Q16, followed by
Middle East & Africa at 33.6%, Canada at 16.6%, Western Europe at 15.6%,
Asia/Pacific (excluding Japan) at 14.5%, Central and Eastern Europe at
11.6%, Latin America at 9.9%, and the United States at 0.1%.
Top 5 Vendor Group, Worldwide Cloud IT Infrastructure Vendor
Revenue, Q4 2016 (Revenues are in Millions, Excludes
double counting of storage and servers)
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Vendor Group
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4Q16 Revenue (US$M)
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4Q16 Market Share
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4Q15 Revenue (US$M)
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4Q15 Market Share
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4Q16/4Q15 Revenue Growth
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1. Dell (News - Alert) Technologies
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$1,587
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17.3%
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$1,645
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19.2%
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-3.5%
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2. HPE/New H3C Group**
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$1,340
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14.6%
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$1,381
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16.2%
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-3.0%
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3. Cisco
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$1,032
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11.3%
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$838
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9.8%
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23.1%
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4. Huawei (News - Alert)
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$416
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4.5%
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$258
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3.0%
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61.4%
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5. IBM (News - Alert)*
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$346
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3.8%
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$357
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4.2%
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-3.0%
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5. Lenovo*
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$295
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3.2%
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$275
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3.2%
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7.3%
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5. NetApp*
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$267
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2.9%
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$257
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3.0%
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3.9%
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ODM Direct
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$1,877
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20.5%
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$1,926
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22.5%
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-2.6%
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Others
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$2,014
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28.1%
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$1,613
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25.1%
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24.9%
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Total
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$9,173
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100%
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$8,549
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100%
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7.3%
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IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker, April 2017
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Notes: * IDC declares a statistical tie in the worldwide
cloud IT infrastructure market when there is a difference of one percent
or less in the vendor revenue shares among two or more vendors. **
Due to the existing joint venture between HPE and the New H3C Group, IDC
will be reporting external market share on a global level for HPE as
"HPE/New H3C Group" starting from Q2 2016 and going forward.
In addition to the table above, an interactive graphic showing worldwide
market share for the top 5 cloud IT infrastructure vendors in 4Q15 and
4Q16 is available here.
The chart is intended for public use in online news articles and social
media. Instructions on how to embed this graphic can be found by viewing this
press release on IDC.com.
Top 5 Vendor Group, Worldwide Cloud IT Infrastructure Vendor
Revenue, 2016 (Revenues are in Millions, Excludes double
counting of storage and servers)
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Vendor Group
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2016 Revenue (US$M)
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2016 Market Share
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2015 Revenue (US$M)
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2015 Market Share
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2016/2015 Revenue Growth
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1. Dell Technologies
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$5,747
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17.6%
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$5,391
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18.1%
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6.6%
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2. HPE/New H3C Group**
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$5,311
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16.3%
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$4,768
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16.0%
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11.4%
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3. Cisco
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$3,783
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11.6%
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$2,906
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9.7%
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30.2%
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4. Huawei*
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$1,205
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3.7%
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$743
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2.5%
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62.3%
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4. Lenovo*
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$1,097
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3.4%
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$990
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3.3%
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10.8%
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4. IBM*
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$1,017
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3.1%
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$1,257
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4.2%
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-19.1%
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4. NetApp*
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$1,007
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3.1%
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$1,036
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3.5%
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-2.8%
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ODM Direct
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$6,733
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20.7%
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$7,427
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24.9%
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-9.3%
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Others
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$6,694
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20.5%
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$5,327
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17.8%
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25.7%
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Total
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$32,594
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100%
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$29,845
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100%
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9.2%
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IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker, April 2017
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Notes: * IDC declares a statistical tie in the worldwide
cloud IT infrastructure market when there is a difference of one percent
or less in the vendor revenue shares among two or more vendors. **
Due to the existing joint venture between HPE and the New H3C Group, IDC
will be reporting external market share on a global level for HPE as
"HPE/New H3C Group" starting from Q2 2016 and going forward.
IDC's Worldwide
Quarterly Cloud IT Infrastructure Tracker is designed to provide
clients with a better understanding of what portion of the server, disk
storage systems, and networking hardware markets are being deployed in
cloud environments. This tracker will break out vendors' revenue by the
hardware technology market into public and private cloud environments
for historical data and provide a five-year forecast by the technology
market.
Taxonomy Notes: IDC defines cloud services more formally
through a checklist of key attributes that an offering must manifest to
end users of the service. Public cloud services are shared among
unrelated enterprises and consumers; open to a largely unrestricted
universe of potential users; and designed for a market, not a single
enterprise. The public cloud market includes variety of services
designed to extend or, in some cases, replace IT infrastructure deployed
in corporate datacenters. It also includes content services delivered by
a group of suppliers IDC calls Value Added Content Providers (VACP).
Private cloud services are shared within a single enterprise or an
extended enterprise with restrictions on access and level of resource
dedication and defined/controlled by the enterprise (and beyond the
control available in public cloud offerings); can be onsite or offsite;
and can be managed by a third-party or in-house staff. In private cloud
that is managed by in-house staff, "vendors (cloud service providers)"
are equivalent to the IT departments/shared service departments within
enterprises/groups. In this utilization model, where standardized
services are jointly used within the enterprise/group, business
departments, offices, and employees are the "service users."
For more information about IDC's Worldwide Quarterly Cloud IT
Infrastructure Tracker, please contact Lidice Fernandez at 305-351-3057
or [email protected].
About IDC Trackers IDC
Tracker products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC's Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data, and marketing services company. To
learn more about IDC, please visit www.idc.com.
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