Research: Enterprise market for data centres is strong for the time being

The enterprise data center market had a growth spurt last year, according to data from Synergy Research. Infrastructure spending – including servers, switches and routers – grew 13 percent last year, representing a $125 billion market.

The figures show that the market is still growing, although the growth is not as high as that of the public cloud. The cloud market grew 32 percent last year to 250 billion dollars. Synergy analyst John Dinsdale tells TechCrunch that some of the data center sales are likely to go to the public cloud as vendors are rapidly building many data centers today.

“When it comes to applications and the level of usage, I would rather say that there is a lot of growth in the general market, but that the cloud represents the most of that growth. The growth of enterprises and on-premises is relatively flat,” says the analyst.


According to the report, Cisco remains the dominant vendor in this market, with 23 percent market share in the past year. And all this while it is trying to become more of a vendor of software and services, spending billions on companies like AppDynamics, Jasper Technologies and Duo Security.

However, the company lost a few percentage points in market share in the past year. This is mainly due to the fact that they are not doing very well in the server part of the market, which is the largest part of the market. HPE is in second place on the list and has an 11% market share.

The figures show that companies are still investing in new hardware, but growth is unlikely to be sustained in the long run. At AWS RE:invent in November, AWS president Andy Jassy pointed out that the vast majority of data is in private data centers, but that we can expect a faster shift to the public cloud in the next five years. Companies like Amazon often don’t buy hardware from other companies, but develop their own tools that they can understand and configure at a higher level.

This news article was automatically translated from Dutch to give a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.