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Building Blocks: Breaking Down The Cloud Infrastructure Market

Synergy Research Group looks at the share of vendors around the cloud infrastructure market, finding HPE, Cisco and Microsoft continue to lead in the three main segments.

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The Cost Of Cloud

Over the past two years, an average of $29 billion per quarter has been spent on data center infrastructure -- servers, operating systems, storage, networking, and virtualization software combined for roughly 95 percent of that spend, with network security and cloud management tools accounting for the remaining almost $1.5 billion.

That data center spend is "being increasingly driven by the cloud," noted Synergy Research Group in its latest report, with cloud deployments or shipments of cloud-enabled systems accounting for more than half of the market's total sales.

Synergy Research Group looked at the market share of top vendors in the space and found Hewlett Packard Enterprise, Cisco Systems and Microsoft continue to lead in the three main segments – private cloud hardware, public cloud hardware and cloud infrastructure software.

Spending on public cloud services is increasing by 50 percent each year, and Software-as-a-Service by 30 percent. But enterprises are also spending much more on building private clouds in their data centers as they realize the benefits of flexible and agile IT technology, said Jeremy Duke, Synergy Research Group's founder and chief analyst, in the report.

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