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HP Finally Takes Lead From Cisco In Cloud Infrastructure Equipment Market

HP pulled ahead in the second quarter of 2015, reaching 13 percent market share, compared with Cisco's 12.5 percent, according to Synergy Research Group.

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HP Pulls Ahead

HP has been closely trailing Cisco over the past two years before becoming neck and neck in the first quarter of 2015. Palo Alto, Calif.-based HP has now surpassed the networking giant by capturing 13 percent of the market after achieving stronger sequential revenue growth. HP has a clear lead in the private cloud, is a main challenger in storage and is winning the cloud server segment, according to Dinsdale.

"At this stage of the game, HP has one big thing in its favor -- it has a huge base of business selling gear into the data center market, much of which has not yet transitioned over to cloud," said Dinsdale. "So there is an underlying numbers game that now favors HP. Cisco does not have that base of data center business, at least not at anything like the scale of HP, so it needs to rely on further growth of the networking segments and on more aggressively pushing its server business. … Servers account for a huge chunk of cloud infrastructure and HP is now the king of the server market."

Dinsdale said Cisco server revenues are currently about a quarter the size of HP's.

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