Story image

Vendor revenue from infrastructure on the up in 3Q16

16 Jan 17

Vendor revenue is on the up, with sales of infrastructure products for cloud IT growing 8.1% in the third quarter of 2016.

That’s the results from IDC’s latest Worldwide Quarterly Cloud IT Infrastructure Tracker which shows revenue from sales in this sector – which includes server, straoge and Ethernet switch – reached $8.4 billion.

According to the analyst firm, Ethernet switch continues to be the growth leader, as the market awaits new hyperscale datacenter builds to spur additional growth.

The overall share of cloud IT infrastructure sales climbed to 39.2% of all IT infrastructure spending in 3Q16, up from 34.7% a year ago, the report reveals.

Revenue from infrastructure sales to private cloud grew by 8.2% to $3.3 billion, and to public cloud by 8.0% to $5.1 billion. In comparison, revenue in the traditional (non-cloud) IT infrastructure segment decreased 10.8% year over year in the third quarter.

The report shows private cloud infrastructure growth was led by Ethernet switch at 60.8% year-over-year growth, followed by storage at 9.0%, and server at 3.2%. Public cloud growth was also led by Ethernet switch at 46.2% year-over-year growth, followed by server at 6.8% storage at 3.0% year over year.

In traditional IT deployments, server declined the most (12.9% year over year) with Ethernet switch and storage declining 1.6% and 8.6%, respectively.

"New cloud datacenters have begun to launch, but in the third quarter the effect on the cloud IT infrastructure market was minimal," comments Kuba Stolarski, research director for Computing Platforms at IDC.

"As network upgrades continue to prop up cloud growth overall, the hyperscale cloud datacenters are coming and they will drive new server and storage deployments over the next few quarters,” he explains.

“Recently, there has been renewed strength in emerging markets and among smaller cloud service providers,” says Stolarski.

“As OpenStack has become easier to implement and maintain by a growing population of capable system administrators, private cloud options are becoming more viable in an increasing set of use cases and with a wider set of deployment parameters."

From a regional perspective, vendor revenue from cloud IT infrastructure sales grew fastest in Middle East & Africa at 36.7% year over year in 3Q16, followed by Japan at 29.9%, Latin America at 21.7%, Western Europe at 16.8%, Asia/Pacific (excluding Japan) at 11.9%, Canada at 5.3%, Central & Eastern Europe at 4.3%, and the United States at 2.9%. 


Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
IDC: Aussie spending on IT Services to hit $23.5B by 2023
the project-oriented market which is predicted to achieve the highest CAGR through to 2023; though no market is expected to decline
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.