Home > News > featured news > Dell, Microsoft Emerge Revenue Leaders in Data Center Infrastructure

Dell, Microsoft Emerge Revenue Leaders in Data Center Infrastructure

Dell | June 15, 2020

Dell Technologies and Microsoft were the data center hardware and software infrastructure revenue leaders in the first quarter of 2020 as public cloud.
However, the COVID-19 pandemic halted the steady growth trend over the past several quarters in hardware and software revenue, which caused the global data center infrastructure market .
Dell was the leader in data center revenue in both server and storage revenue, while Cisco Systems was the dominant player in networking.

Dell Technologies and Microsoft were the data center hardware and software infrastructure revenue leaders in the first quarter of 2020 as public cloud vendors continue to lead the data center spending charge. However, the COVID-19 pandemic halted the steady growth trend over the past several quarters in hardware and software revenue, which caused the global data center infrastructure market to drop 2 percent year over year to $35.8 billion in the first quarter of 2020, according to IT market research firm Synergy Research Group.

Dell was the leader in data center revenue in both server and storage revenue, while Cisco Systems was the dominant player in networking. Microsoft was featured heavily in the quarter, specifically in the enterprise, thanks to its position in server OS and virtualization applications. The coronavirus pandemic did not have an impact on the big public cloud infrastructure spenders, such as Amazon Web Services and Google, which are spending billions each year on building, expanding and equipping hyperscale data centers to meet growing cloud services demand.

However, the COVID-19 pandemic halted the steady growth trend over the past several quarters in hardware and software revenue, which caused the global data center infrastructure market .

~ Dell Technologies

Worldwide data center hardware and software revenue for public cloud infrastructure increased 3 percent year over year to approximately $13 billion, accounting for 37 percent of the total market. The top four winners in public cloud infrastructure revenue were Dell, Microsoft, Inspur and Cisco. Original design manufacturers (ODMs), which design and manufacture hardware that is later rebranded by other companies for sale, captured a large portion of data center public cloud revenue as well.

John Dinsdale, a chief analyst at Synergy Research Group, said public cloud data center infrastructure revenue is being fueled by annual growth in various market segments. For example, he said cloud services revenue continues to annually grow by almost 40 percent, while enterprise Software-as-a-Service (SaaS) revenue is growing by 25 percent. Search and social networking revenue is increasing by over 15 percent annually, and e-commerce revenue is growing by around 20 percent. All of [this is[ helping to drive growth and increased spending on public cloud infrastructure. .

Worldwide data center sales to enterprises and traditional service providers declined 4 percent year over year to approximately $22.5 billion in the first quarter of 2020.

Notably, most of these services are either little impacted by COVID-19 or may be stimulated by changed enterprise and consumer behavior.” On the other hand, he said, many enterprises have been “negatively impacted by the pandemic, resulting in increased pressure on capital budgets and more impetus on shifting workloads to public cloud providers.” Worldwide data center sales to enterprises and traditional service providers declined 4 percent year over year to approximately $22.5 billion in the first quarter of 2020. The market leader in the enterprise space was Microsoft, followed by Dell, Hewlett Packard Enterprise, Cisco and VMware.

The main hardware segments of servers, storage and networking, in aggregate, accounted for 73 percent of the total $35.8 billion data center infrastructure market. Operating systems, virtualization software, cloud management and network security account for the balance, according to Synergy. The research firm said Inspur had the highest growth rate of any vendor in the market during the first quarter. While the need for more public cloud infrastructure grows, worldwide revenue in the data center hardware and software market declined to $35.8 billion in the first quarter of 2020 as COVID-19 impacted enterprises' data center spend.

Spotlight

Fast and efficient data centre design

As we create more data, we need more reliable, efficient data centres, which can be designed and built cheaper and faster. Aurecon took up the challenge to create a data centre configurator that would reduce design time to 3 months and standardise and optimise that design to reduce costs and improve efficiencies.

More featured news

Spotlight

Fast and efficient data centre design

Related News

HYPER-CONVERGED INFRASTRUCTURE,APPLICATION STORAGE

Leviton's $80m Investment in Network Solutions to Boost Innovation

Leviton | January 06, 2023

Leader in electrical, lighting, and networking systems, Leviton, has made significant headway in its five-year, $80 million worldwide capital investment plan for its Network Solutions vertical. Leviton's investment in the Network Solutions business unit will solidify its $202 million acquisition of Berk-Tek in 2020, will increase its production capacity worldwide, and establish Leviton as one of the leading end-to-end makers of copper and fiber network infrastructure systems. The new expansion project of the Leviton fiber optic cabling manufacturing facility in Fuquay-Varina, North Carolina, makes up a sizeable chunk of the investment strategy. Construction of the project began in December 2022. Once finished in 2024, the facility will be equipped to support single mode cables, made-to-order fiber optic cable assemblies and long-term growth of multimode cables. In addition to this vast expansion, Leviton has implemented the following key advancements: Leviton's ATLAS-X1TM and EXTREMETM solutions have grown globally. Indeed, that doubled capacity in 2021 to meet worldwide demand. Additionally, Leviton added state-of-the-art technology at its Glenrothes (Scotland) manufacturing facility to improve capacity and deliver a uniform global specification for Category 6A cabling. Installing the optical fiber cable in the second quarter of last year, Leviton armored in sales support of this rapidly growing product line, including pre-terminated data center solutions in its NC factory. About Leviton Leviton designs innovative products across multiple industries, including electrical, lighting, and networking, to improve people's lives in several ways. Isidor Leviton immigrated from Russia to the United States in 1906, started a modest tinsmithing business, and founded Leviton, promising to remain committed to thinking and growing, innovative in creating new products, dedicated to giving safer life to communities throughout the world and adhere to UL standards in producing high-quality products.

APPLICATION INFRASTRUCTURE

Styra’s Authorization Policy Tools Speed Up Infrastructure Deployment

Styra | January 23, 2023

Styra, Inc. creates and maintains Open Policy Agents (OPA) and is one of the leading cloud-native authorization firms. The company recently introduced the toolset for infrastructure to its Styra Declarative Authorization Service (DAS) and the industry’s broadest policy library. In addition, Styra offers NIST Special Publication (SP) 800-190 compliant policies within its expanded library that includes hundreds of validated policies to address security concerns associated with the use of containers. Styra speeds up the deployment of secure, compliant cloud-native infrastructure and gives enterprise platform teams the tools they need to deploy resources for distributed developers systematically. This saves time and money while keeping security best practices. To ensure security, compliance, and operational health, platform engineers repeatedly write or customize software that stops developers from making errors, and over time build customized guardrails that automatically impose security rules, compliance regulations, and other operational policies each time a developer makes a change. This effort often includes undifferentiated heavy lifting, which adds complexity, risk and creates a significant barrier to on-time delivery. It is when enterprises cannot afford to choose between security and business time-to-market platform, engineering teams can benefit from policy editing for business users, validate building blocks and policy-as-code guardrails to deliver infrastructure resources without compromising security instead of building them from scratch-in-house. Styra enables infrastructure-managing platform teams to: Eliminate manual policy creation and reduce production risks systematically for infrastructure deployments by utilizing policy templates and editing tools that are simple to deploy. Deploy faster with hundreds of Styra-validated AWS, Azure, GCP, and Kubernetes policies for Terraform from the most popular open-source tools and libraries. Easily enforce best practices and compliance for Kubernetes clusters with NIST SP 800-190 compliant policies from Styra, in addition to an extensive collection of Styra validated policies for PCI DSS, MITRE ATT&CK, CIS Benchmarks, and Pod Security Compliance. Enforce policy guardrails on CloudFormation stacks to prevent AWS resource misconfiguration during final resource change checks with the first general-purpose third-party CloudFormation hook from Styra. About Styra Styra Founded in 2019, Styra enables enterprises to enforce, define and monitor policy across their cloud-native environments with the combination of both open source (Open Policy Agent) and commercial solutions (Declarative Authorization Service). The company provides operations, security, and compliance guardrails to safeguard applications, also the infrastructure the company works on. Its policy-as-code solution allows developers, DevOps, and security teams to relieve risks, speed up application development and reduce human error.

HYPER-CONVERGED INFRASTRUCTURE, APPLICATION STORAGE

BDx to Build New 16MW Data Center in Kwai Chung District, Hong Kong

BDx | February 06, 2023

Big Data Exchange (BDx), a provider of data center platforms in Asia-Pacific, has recently announced its plans to construct a new 16MW facility in the emerging high-tech industrial area developed by Hong Kong's premier property development company, Sino Group. BDx intends to have the HKG8 hyperscaler-ready data center operational by the end of 2023. This will be BDx's fourth data center in Hong Kong, situated in the Kwai Chung District, which is growing to be a highly desirable industrial and commercial zone. The data center is five kilometers from the nearest port and twenty-six kilometers from Hong Kong's airport. It will provide redundant power supply and dependable infrastructure to BDx's hyperscale and enterprise clients, ensuring super-dense connectivity, top-notch fail-safe resiliency, and IX ecosystems characteristic of BDx data centers. As data center investments continue to increase, a recent report by Arizton Advisory and Intelligence projects that the Hong Kong data center market will reach nearly $4 billion by 2027. Hong Kong is one of the leading digital hubs in the Asia-Pacific region because of its robust adoption of cloud technologies, smart city development initiatives, and its government's dedication to developing the ICT market. Mayank Srivastava, CEO of BDx, shared, "BDx is pleased to announce our new data center to further our commitment to the Hong Kong market. We are pleased to work with Sino Group to develop our next-generation, hyperscale-ready site, which is designed with fail-safe features and a clear focus on sustainability. We continue to support Hong Kong as The Digital Hub of APAC," He added, "With HKG8, our newest data center in Hong Kong, we continue to expand our footprint across Asia with sustainable, high quality sites. We are proud to offer our customers dense connectivity, IX ecosystems and reliable redundant options, to drive digital delivery and growth." (Source – PR Newswire) About BDx Data Centers BDx Data Centers Singapore-based premier provider of data center, hybrid cloud, and colocation solutions in the Asia-Pacific region. It enables enterprises to scale across the world's most influential markets under the direction of a team with global recognition. With ultramodern facilities in China, Hong Kong, Indonesia, and Singapore, the company provides next-gen solutions that go beyond the norm. To meet the growing digital needs of multinationals, hyperscalers, and financial service organizations, the company is actively expanding its presence in emerging regions.