Enterprise IT Infrastructure Spending Increased in 2017; Cisco Maintains a Big Lead

Synergy Research Group's new data shows that in six key segments of business infrastructure, vendor revenues for the last four quarters have increased by almost 3% per year. Total revenues for the last four quarters reached $ 113 billion, with revenues in each of the last twelve quarters typically in the range of $ 26-29 billion. Data center servers are the largest segment of the market, although revenues fell nearly 1% in 2017. Switches and routers are the second largest segment and have grown 4%. Hosted and cloud collaboration has made the most progress, while on-site collaboration has continued to be challenged by aggressive price competition and market disruption.

Cisco remains the dominant business provider. It is the market leader in four of the six segments, with the exception of cloud and hosted collaboration, where it ranks second, and data center servers, where it ranks fifth. Overall, in all six segments, Cisco's market share in the last four quarters was 26%, one percentage point lower than the previous four quarters. HPE is the second largest business provider with 11% market share in all six segments. It is the leader in data center servers, the second largest WLAN provider and the third largest switch and router. Hosted and cloud collaboration is where neither Cisco nor HPE are the primary providers; Microsoft is the leader in this segment. The top two vendors classified in the other segments are Dell EMC (Enterprise Data Center Servers), Huawei (Switches and Routers), Microsoft (Local Collaboration), and Check Point (Network Security). The main suppliers with particularly high growth rates in 2017 in these highly competitive markets are Super Micro, Arista Networks and RingCentral.

"Despite the booming market for public clouds, the company's IT infrastructure spending was still up in 2017 and will be over the next five years," said the founder and chief analyst at Synergy Research Group, Jeremy Duke. "The focus of this spending is changing, however, with growing interest in hosted solutions, subscription-based business models, and emerging technologies, which will continue to present challenges for established vendors and opportunities for vendors." new participants.

About the Synergy Research Group

Synergy provides quarterly market size and segmentation data for various business infrastructure markets, including vendor revenues by segment and region. Synergy Research Group  helps marketing and strategic decision-makers around the world through their unique insights and in-depth analysis.