HP overtakes Cisco in cloud infrastructure equipment leadership battle

ServersHP is now the top selling supplier to the cloud infrastructure equipment market, having sat on the shoulder of market leader Cisco throughout 2013 and 2014, according to a study by the Synergy Research Group.

The research group’s sales figures for the two vendors showed them to be tied in the first quarter of 2015, but by Q2 HP had opened a lead after achieving much stronger sequential revenue growth. The two leading vendors are both achieving ‘stellar revenue growth’ in the burgeoning market, according to Synergy. However, while HP maintained a 13 per cent worldwide market share in Q2, Cisco’s share dropped by half a percentage point. The two front runners are followed by Microsoft, Dell, IBM, EMC, VMware, Lenovo and Oracle.

In the public cloud infrastructure equipment market Cisco still has a ‘commanding lead’, but HP has a clear lead in private cloud. Total cloud infrastructure equipment revenues, including hardware and software, are now running at $16 billion per quarter, having grown 25 per cent year on year.

HP leads the cloud infrastructure competition because of its dominance in the cloud server sector and its strong contention in storage, according to Synergy. Cisco’s challenge is upheld by its domination of networking, with support from its rapid ascension in the server market. Microsoft owes its high ranking to the success of its server operating system and virtualization applications. In the chasing pack, Dell and IBM both maintain strong positions with a respectable presence in a range of cloud technology markets.

Servers, operating systems, storage and networking combined account for 89 per cent of the cloud infrastructure market, according to Synergy’s figures. The balance of the market revenues are made from cloud security, cloud management and virtualization applications.

“The public cloud services market is clearly booming and driving heavy investment in cloud infrastructure, while a rapid transition to cloud is also in full swing in the enterprise IT market,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst. “The good news for all vendors is that this huge market is growing rapidly and in aggregate the two leaders only account for a quarter of it – much the same as they did a year ago.”

Yesterday cloud service provider Ormuco, an HP Helion Network charter member, appointed Norwich based MigSolv as its UK data centre partner, adding another HP installation to the cloud infrastructure.