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Worldwide cloud IT infrastructure revenues grow 14.9% to US$8 billion in 1Q17, says IDC
Joseph Tsai, DIGITIMES, Taipei [Friday 30 June 2017]

According to the IDC Worldwide Quarterly Cloud IT Infrastructure Tracker, vendor revenues from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 14.9% on year in the first quarter of 2017, reaching US$8 billion.

Cloud IT infrastructure sales as a share of overall worldwide IT spending climbed to 39% in the first quarter of 2017, a significant increase from 33.9% a year ago. Revenues from infrastructure sales to private cloud grew by 6% to US$3.1 billion, and to public cloud by 21.7% to US$4.8 billion. In comparison, revenues in the traditional (non-cloud) IT infrastructure segment decreased 8% on year in the first quarter of the year. Private cloud infrastructure growth was led by Ethernet switch at 15.5% on-year growth, followed by storage (excluding double counting with servers) at 10% and server at 2.1%. Public cloud growth was led by storage, which after heavy declines in the first quarter of 2016 grew 49.5% on year in the first quarter of 2017, followed by Ethernet switch at 22.7% and server at 8.7%. In traditional IT deployments, server declined the most (9.3% on year), with Ethernet switch and servers declining 4.4% and 6.1%, respectively.

“After a weak performance during 2016, storage purchases for cloud IT environments had a strong rebound in the first quarter, driving the overall growth in this segment,” said Natalya Yezhkova, research director for Enterprise Storage at IDC. “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. And as end users continue to embrace the benefits of private cloud infrastructures, spending in this segment will also expand.”

From a regional perspective, vendor revenues from cloud IT infrastructure sales grew fastest in Canada at 59.1% on year in the first quarter of 2017 off a small base (overall cloud IT infrastructure market in Canada was just under US$100 million in the first quarter of 2017), followed by Asia Pacific (excluding Japan) at 18.7%, Japan at 15.3%, the US at 15.1%, Middle East and Africa at 13.2%, Western Europe at 8.9%, Latin America at 7.8%, and the Central and Eastern Europe at 7.2%.

IDC: Worldwide top-3 cloud IT infrastructure vendor revenues, 1Q17 (US$m)

Vendor

1Q17 revenues

1Q17 market share

1Q16 revenues

1Q16 market share

Y/Y

1. Dell

1,289

16.2%

1,292

18.6%

(0.2%)

2. HPE/New H3C Group

1,118

14%

1,223

17.7%

(8.6%)

3. Cisco

902

11.3%

830

12%

8.7%

ODM direct

1,976

24.8%

1,204

17.4%

64.1%

Others

2,678

33.6%

2,379

34.3%

12.6%

Total

7,963

100%

6,928

100%

14.9%

Source: IDC, compiled by Digitimes, June 2017

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