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Virtualization and Cloud Driving Growth in Data Center Infrastructure Market

By Laura Stotler June 18, 2015

As the cloud computing realm grows exponentially and virtualization technologies like NFV and SDN gain prominence, the data center infrastructure market is also growing. New findings from Synergy Research Group indicate the market reached $114 billion during the past year, with software comprising 23 percent of revenues.

Microsoft and VMware are the clear market leaders when it comes to data center infrastructure software, while HP is on top on the hardware side. When it comes to software, Microsoft and VMware brought in nearly 90 percent of revenues, clearly dominating the infrastructure space.

A broader range of companies make up the hardware infrastructure side of the equation, led by HP. The other hardware infrastructure heavy hitters include Cisco, Dell and IBM. The other major players in the overall data center infrastructure space include EMC, Lenovo, NetApp, Oracle, Fujitsu and Hitachi.

“Clearly the single biggest driver of spend on data center infrastructure is the boom in cloud computing,” said Jeremy Duke, founder and chief analyst of Synergy Research. “The shift in computing workloads to public and private clouds is driving huge investments in both service provider and enterprise data centers.”

Synergy counted servers, server OS, storage, networking, network security and virtualization applications as the core infrastructure components in its research. The firm found that overall spending on data centers during the same one-year period rose six percent over the previous year, with software rising by 14 percent and hardware growing four percent. Not surprisingly, virtualization applications, server OS, blade servers and storage applications comprised the biggest areas of growth.

Image via Shutterstock

Cloud computing was not the only driver for growth, however, and traditional data center applications are still a very large and viable part of data center infrastructure.

“The industry and media focus on cloud does tend to hide the fact that almost half of all data center investment is still accounted for by traditional non-cloud applications,” said John Dinsdale, chief analyst and research director at Synergy. “That part of the data center market remains enormous and will remain a prime source of revenue for vendors for many years to come.”

Edited by Dominick Sorrentino

NFVZone Contributing Editor

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