Study: HPE Still Atop Cloud Infrastructure Equipment Market

HPE and Cisco grow revenue from cloud infrastructure equipment sales in 2015

Dan Kobialka

March 23, 2016

1 Min Read
Study: HPE Still Atop Cloud Infrastructure Equipment Market
Salesforce CEO Marc Benioff (L) speaks with Meg Whitman, CEO and president of Hewlett Packard Enterprise, during a keynote address at the 2013 Dreamforce conference in San Francisco. (Photo by Justin Sullivan/Getty Images)

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Cloud infrastructure equipment revenues for both Hewlett Packard Enterprise and Cisco Systems increased in the fourth quarter of 2015, according to a new study from IT market intelligence firm Synergy Research Group.

In addition, Synergy Research Group noted Dell and Microsoft virtually tied for third place in this market, while IBM ranked behind these companies in Q4 2015.

Other study results included:

HPE leads in the cloud server segment and is a challenger in storage, while Cisco is dominant in the networking segment and continues to grow its server product line.

Cisco leads in the public cloud infrastructure market, while HP has a clear lead in the private cloud sector.

Total cloud infrastructure equipment revenues, including hardware and software, exceeded $60 billion in 2015.

Servers, OS, storage, networking and virtualization software combined accounted for 95 percent of the Q4 2015 cloud infrastructure market.

"There continues to be particularly impressive growth in the public cloud infrastructure market," Synergy Research Group founder Jeremy Duke said in a prepared statement. "But enterprises too are buying ever-larger volumes of infrastructure to support their private or hybrid cloud deployments. Across the board there is a massive swing away from enterprises running workloads over more traditional and inflexible IT infrastructure."

Recent data indicates there may be many new opportunities for cloud services providers beyond infrastructure as well.

A study from Microsoft and 451 Research, titled "Beyond Infrastructure: Cloud 2.0 Signifies New Opportunities for Cloud Service Providers," revealed nearly 70 percent of the opportunity for CSPs now centers on application hosting (email and business applications), managed services (backup and disaster recovery) and security services (threat management).

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