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October 5, 2016

HPE leads worldwide cloud IT infrastructure market in Q2

See table for revenue and market share. Global cloud IT infrastructure revenue grew 14.5% to $7.7bn in the quarter, ahead of renewed hyperscale growth, according to IDC.

By Sam

Hewlett Packard Enterprise (HPE) led the worldwide cloud IT infrastructure market by generating $1.26bn revenue in the second quarter of this year, according to International Data Corporation (IDC).

The research firm said vendor revenue from sales of infrastructure products such as server, storage, and Ethernet switch for cloud IT, including public and private cloud, increased 14.5% year over year to $7.7bn in Q2, ahead of renewed hyperscale growth anticipated in the second half of this year.

The overall share of cloud IT infrastructure sales surged to 34.9% in the quarter, up from 30.6% a year ago.

Figures cover server, storage and Ethernet switches for cloud

Figures cover server, storage and Ethernet switches for cloud


Revenue from infrastructure sales to private cloud and public cloud increased 14% and 14.9%, respectively, to $3.1bn and $4.6bn.

In comparison, revenue in the traditional (non-cloud) IT infrastructure segment declined 6.1% year over year in Q2.

Ethernet switch led private cloud infrastructure growth at 49.4% year-over-year growth. Storage and server were at second and third place with growth rates of 19.7% and 8.9%, respectively.

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Public cloud growth was also led by Ethernet switch at 61.8% year-over-year growth, followed by server at 25.1%.

Storage revenue for public cloud decreased 6.2% year over year.

In traditional IT deployments, server growth declined 7.5% year over year. Ethernet switch and storage decreased 2.2% and 2%, respectively.

From a regional perspective, vendor revenue from cloud IT infrastructure sales increased fastest in Latin America at 44% year over year in Q2, followed by Western Europe at 41.2% and Japan with 35.4%.

IDC said there was 21.8% growth in Canada, 21% in Central & Eastern Europe, 16.8% in Middle East & Africa, 15.8% in Asia/Pacific (excluding Japan), and 6.7% in the US.

IDC research director for Computing Platforms Kuba Stolarski said as expected, the hyperscale slow down continued in Q2.

“However, deployments to mid-tier and small cloud service providers showed strong growth, along with private cloud buildouts. In general, the second quarter did not have as difficult a compare to the prior year as the first quarter did, and this helped improve growth results across the board compared to last quarter.

“In the second half of 2016, IDC expects to see strengthening in public cloud growth as key hyperscalers bring new datacenters online around the globe, continued strength in private cloud deployments, and declines in traditional, non-cloud deployments.”

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