Total cloud infrastructure equipment revenues in the third quarter of 2014, including both hardware and software, grew by 10% year on year to well over $12 billion, according to Synergy Research Group.
Cisco has now strengthened its leadership of the cloud infrastructure equipment market and achieved a record high worldwide market share of 15%. This is due mainly to its dominance of the networking segment and its rapidly growing position in servers.
HP increased its market share to almost 13% and continues to battle Cisco for cloud infrastructure leadership. HP is the market leader in cloud servers, a main challenger in storage and also part of the pack chasing Cisco in networking.
Meanwhile, Microsoft took over the No. 3 ranking from IBM, whose standing has been impacted by the impending sale of its x86 product line to Lenovo – as part of the finalized deal, affected business units started transitioning over to Lenovo after the close of the quarter.
Microsoft has total dominance of the server OS segment and is one of the leaders in virtualization applications. Servers, OS, storage and networking combined account for 92% of the cloud infrastructure market, with the balance comprising cloud security, cloud management and virtualization applications.
Across the different types of cloud deployment, Cisco has a clear lead in public cloud infrastructure while HP leads in private cloud.
“IBM will fall further behind Cisco and HP now that it has finally divested its x86 server product line, while Microsoft is almost on its own in the OS segment but cannot match the revenues of the two leaders based on software alone,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst.
“Further down the ranking Chinese vendors Huawei and Inspur are growing rapidly, while Lenovo will now join them as a major player in cloud infrastructure,” added Duke.