Spending on public cloud infrastructure continues to show upward trend in Q1

Total public cloud infrastructure revenues, including hardware and software, has crossed over the USD 10 billion per quarter milestone in Q3 of last year and are now comfortably over USD 11 billion.

Spending on public cloud infrastructure including hardware and software continues to surge, growing 32 percent from the Q1 of 2017 after an unusually strong start to the year, according to a new data released by Synergy Research Group.

The report states this growth as the highest growth figure seen in nine quarters, during which growth has typically been in the 10-20 percent range.  The first quarter spending was down just 2 percent from Q4.

ODMs continue to dominate the vendor market share accounting for almost 30 percent of total revenues, followed by Dell EMC, Cisco and HPE, each with a 5-10 percent market share. The next highest ranked vendors in Q1 were Microsoft, Huawei and VMware, the data added.

“As we saw in our analysis of Q1 hyperscale capex, the hyperscale operators are on a spending spree and continue to crank up their investment in data centers, with much of this spending flowing through to the vendors of data center hardware and software,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. 

"Our forecasts show that IaaS, PaaS, SaaS and public cloud workloads generally are all going to continue to grow rapidly over the next five years, which will continue to drive ever-increasing levels of spending on data center infrastructure," he added.

Total public cloud infrastructure revenues, including hardware and software, has crossed over the USD 10 billion per quarter milestone in Q3 of last year and are now comfortably over USD 11 billion.

Servers, OS, storage, networking and virtualization software combined accounted for 95 percent of the Q1 public cloud infrastructure market, with the balance comprising cloud security and cloud management, the data forecasted.