Worldwide Cloud Market Analysis &
Vendor Tracking Report
for HPE
Q4 2015
Synergy Research Group
March 31, 2016
Contents
•
Cloud overview
•
Market overview and vendor positioning by segment
o
Private cloud infrastructure – hardware & software
o
Public cloud infrastructure – hardware & software
o
Total cloud infrastructure – hardware & software
o
Cloud infrastructure services
o
Cloud infrastructure – hardware, software & services
combined
o
Other key markets associated with cloud
•
Appendix – definitions, methodology
March
2016
Cloud overview
• The IT industry is going through a huge generational shift, with companies moving away from building and managing in-house data centers and instead accessing highly elastic on-demand computing facilities via the cloud
• The main benefits of using the cloud are flexibility, speed, a vastly improved development & test environment and potentially huge financial benefits. Financial benefits may come from large cost savings, but equally important is the move away from upfront spend on CAPEX to ongoing operating costs
• Cloud-delivered services are increasingly targeting more and more IT functions and application areas – not just providing foundational computing and storage capacity, but also operating systems, programming languages, services, database applications and tools
• The cloud market can be split into two main areas – cloud build consisting of hardware and software used to construct clouds; and cloud services that are provided by cloud operators. In Q4 2015 the cloud build market was 2.8 times the size of the cloud services market
• All traditional data center technology vendors are targeting the larger cloud build area, while the cloud service area is being increasingly dominated by a handful of operators with global hyperscale data center networks
• Currently HPE is the leader in the combined cloud build/cloud services market, followed by Cisco, Amazon, Microsoft, and IBM. The impending merger of Dell and EMC will shake up the vendor rankings, likely pushing the merged company to the #2 ranking behind HPE
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March
2016
Private cloud infrastructure – hardware & software
• Covers hardware & software used to build private clouds
Servers, server OS, storage,
networking, virtualization apps, cloud security, cloud management
• Multi-billion dollar market growing at ~17% per year
• HPE has a clear lead
• Other notable vendors outside the top five include EMC, VMware, Lenovo, Oracle and NetApp
Dell/ EMC , when combined, would likely hold #2 rank.
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Worldwide data
March
2016
Public cloud infrastructure – hardware & software
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• Covers hardware & software used to build public clouds
Servers, server OS, storage, networking, virtualization apps, cloud security, cloud management
• Multi-billion dollar market growing at ~30% per year
• Cisco has a clear lead,
though its market share has declined
• Other notable vendors outside the top five include Huawei, Microsoft, Juniper, Lenovo, Inspur, and VMware
Dell/EMC, when combined, would likely be ranked #2= alongside HPE
Worldwide data
March
2016
Total cloud infrastructure – hardware & software
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• Covers hardware & software used to build private, public & hybrid clouds
Servers, server OS, storage, networking, virtualization apps, cloud security, cloud management
• Multi-billion dollar market growing at ~24% per year
• HPE and Cisco vying for leadership; HPE currently on top
• Other notable vendors outside the top five include EMC,
VMware, Lenovo, Oracle and Huawei
Dell/EMC, when combined, would likely be vying for leadership with HPE and Cisco
Worldwide data
March
2016
Cloud infrastructure services
7 • Covers infrastructure
services sold by cloud operators
Public IaaS, Public PaaS, Private & Hybrid Cloud Services
Multi-billion dollar market
growing at ~52% per year
• Amazon/AWS in a league of its own
• Other notable operators outside the top five include Rackspace, Fujitsu, Oracle, NTT and HPE
• The market is consolidating as tier 2 players struggle to compete with the top four
Worldwide data
March
2016
Cloud infrastructure – hardware, software & service
combined
8 • Covers the combination of
cloud build and cloud infrastructure services
• Multi-billion dollar market growing at ~30% per year
• HPE, Microsoft and IBM
active in both cloud build and cloud services; Cisco focuses on cloud build; Amazon/AWS focuses on cloud services
• Market is still in the early years of a generational shift from traditional in-house data centers to cloud computing
Dell/EMC, when combined, would likely be ranked #2= alongside HPE
Worldwide data
March
2016
Other key markets associated with cloud
o Non-cloud data center infrastructure – servers, storage, networking and software used to build traditional non-cloud data centers. Leaders are Microsoft, HPE, Cisco, Dell, IBM, EMC and Lenovo
o SaaS – cloud-delivered application software sold via a subscription model. Leaders are Salesforce, Microsoft, Google, SAP, Oracle, IBM and Citrix
o CDN – network service that delivers content to end users with high availability and high performance. Service delivery may or may not be cloud based.
Leaders are Akamai, ChinaNetCenter, AWS, ChinaCache, KDDI, Verizon and Highwinds
o Colocation – the leasing of physical space within data center facilities, ranging from individual racks/cages to entire data center buildings. Increasingly used by clients as local onramps to access cloud operators. Biggest client sectors are cloud, IT service providers, digital content and networking. Leaders are Equinix, Digital Realty, NTT, Verizon, CenturyLink, Global Switch and China Telecom
o Managed server hosting – traditional hosted server leasing service that is now transitioning to cloud. Leaders are Rackspace, AT&T, Verizon, IBM and NTT
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March
2016
Appendix
• Research methodology – the data and analysis in this report is based on an extensive quarterly survey of all leading cloud technology vendors and cloud operators, supported by rigorous analysis of earnings material, extensive briefing with industry players and ongoing tracking and modeling of cloud markets
• Definitions – the main foundation are cloud definitions that have been
developed by the Department of Commerce’s National Institute of Standards and Technology (NIST). In discussions with industry experts these definitions are then refined, especially in the area of demarcation between public and private cloud deployment models
• About Synergy Research Group – founded in 1999, Synergy Research Group provides market intelligence and analytics for the IT and networking industry. It specializes in providing comprehensive quantitative market data that is updated every quarter. Synergy’s research is used worldwide by industry-leading companies, Wall Street firms and government institutions
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March
2016
Synergy Research Group
www.srgresearch.com
John Dinsdale
Chief Analyst
Synergy Research Group
jdinsdale@srgresearch.com
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Jeremy Duke
Founder and Chief Analyst
Synergy Research Group
