Story image

Rebounding storage market pulls cloud IT infrastructure market up

03 Jul 2017

A strong rebound in storage sales for the cloud IT market has driven growth in overall cloud IT infrastructure in the first quarter of 2017, with IDC saying cloud IT infrastructure now accounts for 39% of all IT spending.

The analyst firm says vendor revenue from sales of servers, storage and Ethernet switches for cloud IT, was up 14.9% year on year, hitting US$8 billion.

Across Asia Pacific, excluding Japan, vendor revenue from cloud IT infrastructure was up 18.7%, making the region the second fastest growing, behind Canada, which logged 59.1% year on year growth, but off a small base – cloud IT infrastructure spend was under $100 million for the period.

Infrastructure sales to public cloud were the big mover, up 21.7% to $4.8 billion, while  revenue from infrastructure sales to private cloud were up 6.0% to $3.1 billion.

The growth comes as traditional – or non-cloud – sales record an 8.0% decrease for the same period.

Natalya Yezhkova, IDC enterprise storage research director, says overall, the first quarter set a strong beginning of the year for the cloud IT infrastructure market.

“With positive dynamics in purchasing activity by hyperscalers across all technology segments, we expect a strong year ahead for the fastest growing public cloud segment,” Yezhkova says.

“And as end users continue to embrace the benefits of private cloud infrastructures, spending in this segment will also expand.”

Storage, which saw heavy declines in the first quarter of 2016, led the public cloud growth this year, jumping 49.5% year on year. Ethernet switches were up 22.7%, while servers were up 8.7%.

Within the private cloud market, Ethernet switches were the big movers, up 15.5% year on year, followed by storage, which was up 10.0%, excluding double counting with servers. Servers were up 2.1%.

By comparison, in traditional IT deployments servers declined the most, down 9.3%, while Ethernet switch and servers declined 4.4% and 6.1% respectively.

Dell and HPE/New H3C Group shared a statistical tie in IDC’s eyes, though Dell claimed 16.2% of the market – down from 18.6 a year ago – with a 0.2% revenue decline for Q1 2017 while HPE/New H3C Group’s market share slumped 3.7 percentage points to 14.0%. The company saw revenue decline 8.6%.

Cisco was the only top three vendor to record an increase in revenue, up 8.7% to $902 million, giving the company an 11.3% market share, down from 12.0% for the same quarter last year.

The big upward mover, however, was the ODM director market, which clocked a 64.1% increase in revenue and now accounts for 24.8% of the market.

Why 'right to repair' legislation could be a new lease on life for broken devices
“These companies are profiting at the expense of our environment and our pocketbooks as we become a throw-away society that discards over 6 million tonnes of electronics every year.”
Attacks targeting Cisco Webex extension explode in popularity - WatchGuard
WatchGuard's Internet Security Report for Q4 2018 also finds growing use of a new sextortion phishing malware customised to individual victims.
SAS partners with NVIDIA on deep learning and computer vision
“By partnering with NVIDIA, we combine our strengths to augment human intelligence and realise the true potential of AI.” 
Why businesses must embrace automation to ensure success
“For many younger workers, the traditional view of a steady job at one company, perhaps for life, simply doesn’t reflect reality."
Dropbox invests in hosting data inside Australia
Global collaboration platform Dropbox has announced it will now host Australian customer files onshore to support its growing base in the country.
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
Worldwide spending on security to reach $103.1bil in 2019 - IDC
Managed security services will be the largest technology category in 2019.
How Cognata and NVIDIA enable autonomous vehicle simulation
“Cognata and NVIDIA are creating a robust solution that will efficiently and safely accelerate autonomous vehicles’ market entry."