Cisco Continues to Lead the Cloud Infrastructure Market



Cisco leads the cloud infrastructure market

About a year back, Cisco (CSCO) committed to investing $1 billion in the cloud computing market over the next two years. It clearly saw the growth potential in this market. The result of this investment was that the company managed to strengthen its position in the cloud infrastructure equipment market. Cloud infrastructure equipment consists of computing, networking, and storage platforms for the cloud. In the last year or so, Cisco has managed to overtake HP (HPQ) and IBM (IBM) in this market.

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According to a report from Synergy Research Group and as the chart below shows, Cisco leads the cloud infrastructure equipment market with a share of 15% as of 3Q14. HP was a close second in this market with a share of 13%. During the third quarter, Microsoft (MSFT) managed to overtake IBM in this market. IBM’s position weakened due to the impending sale of its x86 server business to Lenovo.

HP has also started to become aggressive in this space

Cisco has managed to strengthen its position in the cloud infrastructure market on the back of its leadership in the networking and servers market. Plus, the company launched its Cisco Connected Analytics Strategy, through which it will analyze data at the edge of the network. Cisco is also making a push in the “InterCloud space,” which is the term used for the network of interconnected clouds. According to the company, InterCloud now serves over 400 data centers across more than 50 countries.

HP, on the other hand, has started to become aggressive in this space. The company launched Helion, a cloud product for its enterprise customers, last year. HP also announced a joint venture with Foxconn to create a new line of cloud-optimized servers.

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