Dell EMC challenges HPE, Cisco; ODMs join the party, in USD 70 billion cloud infrastructure market

Contract manufacturers, thanks to increased activity by hyperscale service providers, are also on the rise

Long-time cloud infrastructure market leaders, HPE and Cisco, now have a new contender for the top spot. The new Dell EMC now has almost equal market share in the fast-growing segment, according to the Q4 data from Synergy Research Group.

All the three companies hold close to 11.5% market share each, according to the research firm’s latest release.

While Dell EMC’s rise to the top position was a technical change in the market structure, what is noteworthy is the rise of the fourth power. Original Design Manufacturers (ODMs), powered by the “ongoing heavy investment in own-designed hardware by hyperscale cloud providers” now have a similar market share of 11.5%.

In short, these four combined account for close to half of the market. Microsoft and IBM are the other two significant cloud infrastructure players with close to 7% and 6% share respectively.

“Across the different types of cloud deployment, Cisco continues to hold a commanding lead in public cloud infrastructure while Dell EMC gained a narrow lead over HPE in private cloud,” said Synergy Research Group.

Total cloud infrastructure equipment revenues, including public and private cloud, hardware and software, passed the USD 70 billion milestone in 2016.

SRG includes servers, OS, storage, networking, virtualization software, cloud security and cloud management in its definition of cloud infrastructure. HPE led in servers, Dell EMC in storage, Cisco in networking and Microsoft in OS and virtualization software. These five segments accounted for 95% of the market. IBM, though it lags in the overall share has a strong presence across multiple segments.  

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