Cisco maintains significant lead in rising IT infrastructure market

Vendor revenues for the last four quarters increased by almost 3% on an annualised basis across six key enterprise infrastructure segments, says Synergy Research Group.

Aggregate revenues for the last four quarters reached $113bn, with revenue in each of the last 12 quarters typically in the $26-29bn range.

Data centre servers comprise the largest segment of the market, though revenues here declined by almost 1% in 2017.

Switches and routers are the second largest segment and they experienced growth of 4%. Hosted & cloud collaboration grew the most while on-premise collaboration continued to be challenged by aggressive price competition and market disruption.

Cisco remains the dominant enterprise vendor, according to Synergy Research Group, leading in four of the six segments with the exceptions being hosted and cloud collaboration, where it is ranked second, and data centre servers, where it is ranked fifth.

In aggregate across the six segments, Cisco's market share over the last four quarters was 26%, down a percentage point from the preceding four quarters.

HPE is the second ranked enterprise vendor with a market share of 11% across the six segments. I's the leader in data centre servers, the number two ranked vendor in WLAN and ranked third in switches and routers.

Hosted and cloud collaboration is the one area where neither Cisco nor HPE are the top vendor. Here, Microsoft is the leader in this segment.

The number two ranked vendors in the other segments are Dell EMC (enterprise data center servers), Huawei (switches and routers), Microsoft (on-premise collaboration) and Check Point (network security).

According to Synergy Research Group, major vendors that have achieved particularly high 2017 growth rates in these competitive markets include Super Micro, Arista Networks and RingCentral.

"Despite a burgeoning public cloud market, enterprise IT infrastructure spending was still on the rise in 2017 and will be for the next five years," said Synergy Research Group's founder and Chief Analyst Jeremy Duke.

"The focus of that spending is changing, however, with a growing emphasis on hosted solutions, subscription-based business models and emerging technologies. Those changes will continue to present challenges for incumbent vendors and opportunities for new market entrants."

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