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Public cloud providers pull investment in data center infrastructure

The public cloud providers are becoming the main buyers of equipment for data center infrastructureaccording to a report by Synergy Research Group, which shows that in 2021, purchases of hardware and software for this purpose rose sharply.

In total, overall investment grew by around 10% year-on-year, reaching $185 billion in 2021, of which investment in public cloud infrastructure accounts for 47% of the total. Most of this spending went to purchasing hardware: 77% of the total was spent on servers, storage, and networking equipment. As for software, including operating systems, cloud management, virtualization and network security, it accounted for the remaining 23%.

As we have noted, the majority of new investment in data center infrastructure equipment was made by public cloud providers: their investment grew 20% year-on-year, compared to 3% growth in spending on their data centers by enterprises. that are not cloud or service providers. Equipment manufacturers selling directly to cloud providers were the biggest spenders in this market. They are followed by Dell, Microsoft and Inspur, practically tied for second position. When it comes to business equipment sales, top of the list are Microsoft and Dell, followed by HPE, Cisco, VMware and IBM.

By segment Dell is the first in server and storage sales revenue, while Inspur is the leader in server sales to public cloud providers. Cisco dominates in the networking segment, while Microsoft ranks high on the charts for its position in server operating systems and virtualization applications. After these, the main vendors in the sector are HPE, Huawei, VMware, Lenovo and IBM.

According John Dinsdale, Chief Analyst at Synergy Research Group “The main issue is the ever-increasing market share attributed to sales to public cloud providers, which now account for nearly half of all data center equipment investment. Our forecasts are that these trends will continue over the next five years, with annual growth in sales to cloud providers in the double digits, helping to offset a somewhat flat enterprise market.”

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