Despite the growth of cloud over the past decade, for most organizations, only 20 percent of workloads have made their way to the public cloud — and these are not yet companies’ core mission-critical workloads. The 80 percent that remains is where real enterprise value lies.
“New data from Synergy Research Group shows that vendor revenues from Ethernet switch and router markets passed the $12 billion mark in the final quarter of 2018, achieving a new all-time high. For the full year vendor revenues were in excess of $44 billion, up 4% from 2017.”
“Business at the hyperscale operators is booming. Over the last four quarters, their year-on-year revenue growth has averaged 24% and they are investing an ever-growing percentage of their revenues in capex,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
The global data center market is set to grow at a CAGR of more than 10 percent over the next five years. In terms of geography, the Americas contributed the maximum share of the data center solutions market in 2017 and will continue to grow at a considerable rate till 2022.
Riding healthy U.S. and global economies, strong demand for AI-capable hardware and other tailwind trends, the high-performance computing server market jumped 28 percent in the second quarter 2018 to $3.7 billion, up from $2.9 billion for the same period last year.
Cloud service providers continue to drive computing server investment. Meanwhile, vendor revenue in the worldwide server market increased 26.4 percent year-over-year to $20.7 billion in the fourth quarter of 2017 (4Q17), according to IDC.