HPE, Dell & Cisco Lead Cloud Infrastructure Sales

Wyatt CarlsonOctober 5, 2016
11:11 am PT

In the second quarter of this year, Hewlett Packard Enterprise (HPE) topped all vendors in cloud IT infrastructure, followed by Dell, Cisco, and EMC, according to an IDC study.

Fifth place was a five-way tie between Lenovo, NetApp, IBM, Huawei, and Inspur. IDC declares a statistical tie when there is less than a one percent difference in revenue among two or more vendors.

By IDC’s reckoning, HPE held 16.4 percent of the market share by revenue. Dell had 13.1 percent, and Cisco had 11 percent, with the latter two showing market-share gains compared with a year ago. The fifth-place contenders all had about 3 percent share.

Direct ODM sales accounted for 20 percent of the market.

When comparing these numbers to those from the second quarter of 2015, the numbers remain similar and the order remains the same among the top four vendors, according to IDC.

Overall, cloud IT infrastructure revenue increased by 14.5 percent year over year to $7.7 billion in the second quarter. Sales to private cloud grew by 14 percent to $3.1 billion, and public cloud grew by 14.9 percent to $4.6 billion.

Contrast this number with revenue from non-cloud IT infrastructure sales, which decreased 6.1 percent in the second quarter this year.

In the private cloud market, Ethernet switches grew 49.9 percent year-over-year in revenues, followed by storage (19.7 percent) and servers (8.9 percent). Public cloud was likewise led by Ethernet switches (61.8 percent year-over-year growth), followed by servers (25.1 percent), but public-cloud storage revenue declined 6.2 percent year-over-year.

Ethernet switch, storage, and server sales all declined for non-IT cloud deployments, according to IDC.

The fastest-growing region for cloud IT infrastructure was Latin America, where sales grew 44 percent year-over-year in the second quarter, IDC reported. That was followed by Europe at 41.2 percent, Japan at 35.4 percent, Canada at 21.8 percent, Central and Eastern Europe at 21 percent, Middle East and Africa at 16.8 percent, Asia/Pacific (excluding Japan) at 15.8 percent, and the U.S. at 6.7 percent.