Cisco Grabs IBM's Lead in Cloud Infrastructure Equipment
RENO, NV, June 10, 2013
New Q1 data from Synergy Research Group shows that Cisco has taken over leadership of the cloud infrastructure equipment market, just one quarter after IBM’s share of the market had hit a two-year high. The first quarter was an exceedingly poor one for the server market, and as a consequence IBM and HP both took a big hit in cloud infrastructure equipment revenues. Meanwhile Cisco had a very strong quarter in public cloud networking infrastructure, helping it to grab more than 15% share of the overall cloud infrastructure equipment market.
Total revenues for the quarter were $9.7 billion, 12% down sequentially but marginally up on the first quarter of 2012. On a rolling four quarterly basis, annual growth has dropped off a little to 3%. Computing system’s share of total cloud infrastructure equipment revenues dropped off to 46% in the quarter, while both networking and storage accounted for about a quarter of total revenues.
“Cisco has been steadily and consistently building its share in this market and now finds itself in the leadership position” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “While the server market is somewhat volatile and subject to substantial quarterly swings, we’re also seeing the effects of two disruptive trends taking hold which are impacting the big server vendors in particular. Firstly, companies with massive data centers like Google and Rackspace are increasingly building their own server platforms assisted by ODMs. Secondly, due to the market adoption of Infrastructure as a Service (IaaS), organizations both big and small are increasingly outsourcing their data centers. We believe this will continue to fuel M&A activity, as we have just seen with IBM’s acquisition of SoftLayer.”
About Synergy Research Group
Synergy Research Group, now part of TechInsights, delivers quarterly analyses of global IT and Cloud markets, offering detailed breakouts of vendor revenues and shipments by segment and region. Market shares and forecasts are provided through Synergy Interactive Analysis (SIA™) — the industry's only fully proprietary SaaS platform purpose-built for market share and forecasting analytics.
For more than 25 years, Synergy has been a trusted source of quantitative research and market intelligence across emerging communications and technology sectors. By combining syndicated research with specialized consulting, we deliver actionable intelligence to marketing and strategy executives worldwide.
A trusted source of accurate market data, Synergy is cited by industry leaders as well as leading financial, business, and trade publications such as The Economist, The New York Times, The Wall Street Journal, United States Federal Reserve Board, NPR, Forbes, Bloomberg, Financial Times, Bank of England, Fortune, and The Guardian.
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