Cloud covers almost one-third of IT infrastructure revenue, HPE biggest gainer

IBM had a fall of 30.30%. Latin America, the US and European markets had a fall in year over year growth revenue with the Ethernet switch market being the most profitable.

Cloud IT infrastructure revenues climbed to a 32.3% share of overall IT revenues, whereas, revenue from non-cloud IT infrastructure segment decreased by 6% year over year in the first quarter of 2016, as per IDC.


Private cloud revenue grew by 6.8% to USD 2.8 billion and public cloud revenue grew by 1.9% to USD 3.9 billion.


Revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT grew by 3.9% year over year to USD 6.6 billion in the first quarter of 2016 on slowed demand from the hyperscale public cloud sector, as per IDC.


Market saw declines in both storage and servers, and growth in the Ethernet switch, which also showed a strong year-on-year growth in both private and public cloud, 53.7% and 69.4%, respectively. Storage grew 11.5% year over year in private cloud, but declined 29.6% in public cloud. Conversely, server declined 1.1% in private cloud and grew 8.7% in public cloud.


Top Companies Quarter Review

HPE was the biggest gainer with revenue of USD 1,137 million in the first quarter alone with a year over year growth of 19.8%. Cisco and Dell had a tie at second position and was far from HPE but in close revenue of USD 786 million and USD 782 million respectively. IBM had the biggest decline of 30.3% in year over year growth and slipped down to 5th position.


Region-wise Review

From a regional perspective, vendor revenue from cloud IT infrastructure sales grew fastest in the Middle East and Africa (MEA) at 25.9% year over year in first quarter, followed by Western Europe and Asia/Pacific (excluding Japan). Latin America had the biggest decline of 21.2% year over year, while the United States and Central & Eastern Europe also fell.


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