Enterprises Spent $125B on IT Infrastructure in 2018, Says Synergy Research

In 2018, Cisco maintained its leadership across multiple enterprise infrastructure segments according to new research from Synergy Research Group. The report monitored six enterprise infrastructure segments — data center servers, switches and routers, hosted and cloud collaboration, on-premises collaboration, network security, and WLAN — throughout the past year. Across these six segments vendor revenues grew 13 percent from the previous year, reaching $235 billion over the last four quarters. According to the research firm, 2018 represented a shift from previous years. In the years preceding, IT infrastructure spending had remained largely stagnant but finally picked up near the end of 2017. “There was a lot of server refresh going on, and due to the dramatically increasing amounts of data and processing requirements, the new gear tends to be much more feature rich and with higher ASPs [average server prices],” said John Dinsdale, a chief analyst at Synergy Research Group. “So unit shipments of enterprise servers have been flat-to-low growth, but prices have shot through the roof.”