The cloud investment exceeded 70 billion dollars in 2016

The cloud infrastructure sector continues to grow steadily at a rate of over 70 billion dollars over the past year. This is the latest report prepared by Synergy Research Group, which also highlights other interesting conclusions.

The public cloud continues its strong growth

Although combined investment in public cloud, private cloud, hardware and software has experienced the above growth, there is a noticeable difference between private cloud growth, which has been reduced, and growth in public cloud investment maintained in a double-digit figure.

In this sense, John Dinsdale, chief analyst and research director at Synergy Research Group, points out that “while spending on services and cloud infrastructure is already huge, it is still relatively early to transition from enterprise workloads to cloud. That means the success in the cloud infrastructure market is of vital importance to IT providers, and they will strive to maximize their market share.”

On the other hand, the last quarter of 2016 accounted for 27% of total investments in cloud infrastructure that year, while 95% of that figure corresponded to the combination of operating systems, storage, servers, networks and virtualization software.

The summit of suppliers receives a new actor

Regarding the manufacturers, Cisco and HPE continue their struggle to lead the world market. However, this battle has now joined a third, Dell EMC. Thus, each of these three players has a global market share of cloud infrastructure providers very similar to around 11.5%, followed by the contract manufacturers, Microsoft and IBM.

And in terms of segments, the Synergy Research Group report concludes that HPE maintains a clear advantage in terms of cloud servers when it comes to reinforcing its storage position. Meanwhile, Cisco maintains the network domain and has a rapidly growing server product line, and Dell EMC dominates storage and remains the second server provider. Finally, Microsoft’s importance is primarily due to its server operating system and its virtualization applications, while IBM consolidates an advantageous position in different segments of cloud technology.