Hyperscale data operators are biggest spenders on hardware and software, data shows
Research - DECEMBER 17, 2019

Hyperscale data operators are biggest spenders on hardware and software, data shows

by Kali Persall

Hyperscale data operators accounted for 33 percent of spending on data center hardware and software in the first three quarters of 2019, according to new data from Synergy Research Group.

In the first three quarters of 2019, the total market increased in size by more than 34 percent, with the vast majority of growth caused by increased spending by the hyperscale operators, which include large providers in the field of IaaS, PaaS, SaaS, search, social networking and e-commerce.

In contrast, enterprise and service provider spending rose by 6 percent. According to the report, spending saw an incremental increase compared to recent years, up from 26 percent in 2017 and 15 percent in 2014.

According to the report, increased spending by hyperscale operators has been driven by burgeoning demand for public cloud services and continued strong growth in social networking. Meanwhile, enterprise spending has remained under pressure, primarily due to the ongoing shift in workloads from private networks to the public cloud.

“We are seeing very different scenarios play out in terms of data center spending by hyperscale operators and enterprises,” said John Dinsdale, a chief analyst at Synergy Research Group. “On the one hand, revenues at the hyperscale operators continue to grow strongly, driving increased demand for data centers and data center hardware. On the other hand, we see a continued decline in the volume of servers being bought by enterprises.”

He added, “These trends will continue into the future.”

To read the full report, click here.

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