Story image

Cisco grabs IBM's lead as top cloud provider

12 Jun 13

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.

New first quarter data from Synergy Research Group claims the first quarter was a damaging one for the server market, and as a consequence IBM and HP both took a big hit in cloud infrastructure equipment revenues.

Cisco had a very strong quarter in public cloud networking infrastructure however, helping it grab more than 15% share of the overall cloud infrastructure equipment market.

“Cisco has been steadily and consistently building its share in this market and now finds itself in the leadership position” says Jeremy Duke, founder and chief analyst, Synergy Research Group.

“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 centres 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), organisations both big and small are increasingly outsourcing their data centres.

"We believe this will continue to fuel M&A activity, as we have just seen with IBM’s acquisition of SoftLayer.”

Total revenues for the quarter stood at US$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% while computing system’s share of total cloud infrastructure equipment revenues dropped off to 46% in the quarter, as both networking and storage accounted for about a quarter of total revenues.

According to the report, the market share stands at:

Cisco 15%

IBM 14%

HP 14%

Dell 9%

EMC 7%

VMware 4%

NetApp 4%

Oracle 3%

Others 30%

Opinion: Critical data centre operations is just like F1
Schneider's David Gentry believes critical data centre operations share many parallels to a formula 1 race car team.
MulteFire announces industrial IoT network specification
The specification aims to deliver robust wireless network capabilities for Industrial IoT and enterprises.
Google Cloud, Palo Alto Networks extend partnership
Google Cloud and Palo Alto Networks have extended their partnership to include more security features and customer support for all major public clouds.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill. 
Schneider Electric's bets for the 2019 data centre industry
From IT and telco merging to the renaissance of liquid cooling, here are the company's top predictions for the year ahead.
China to usurp Europe in becoming AI research world leader
A new study has found China is outpacing Europe and the US in terms of AI research output and growth.
Google says ‘circular economy’ needed for data centres
Google's Sustainability Officer believes major changes are critical in data centres to emulate the cyclical life of nature.
52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.