Enterprise infrastructure spending reached $113 billion in 2017
According to Synergy Research Group, vendor revenues across six key enterprise infrastructure segments rose 3.0% YoY (year-over-year) from 4Q16 to 3Q17. Aggregate revenues in the period touched $113 billion. Data center servers comprised the largest segment, although revenues in this segment declined 1.0% YoY.
Switches and routers comprised the second-largest sector and experienced revenue growth of 4.0% in the period. Revenues were driven by the hosted and cloud collaboration sector, and the on-premise collaboration space saw ongoing market disruption and challenges for companies in the form of aggressive product pricing.
Cisco is the largest player in this space
Cisco Systems (CSCO) maintained its rank as the dominant company in terms of market share, as it led four of the six segments. Cisco is ranked second in hosted and cloud collaboration, and it ranked fifth in data center servers.
Cisco’s overall market share in enterprise infrastructure stands at 26.0%, a YoY fall of 1.0% YoY. Hewlett Packard Enterprise (HPE) was the second-largest player with a share of 11.0%. HPE led the data center server market, occupies the second position in WLAN (wireless LAN), and is ranked third in switches and routers. Microsoft (MSFT) leads the hosted and cloud collaboration segment and ranks second in on-premise collaboration.
Synergy Group believes that there has been a spending shift toward hosted solutions and subscription-based models. Synergy Research’s founder and chief analyst, Jeremy Duke, noted, “Despite a burgeoning public cloud market, enterprise IT infrastructure spending was still on the rise in 2017 and will be for the next five years.”