Report: Microsoft Dominates Cloud Infrastructure Software Market

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Cloud deployments and cloud-enabled systems now account for well over half of the $29-billion-per-quarter data center infrastructure market, according to Synergy Research Group. Synergy released Q1 2016 data on the cloud-building technology market this week, showing that Microsoft continues to dominate the cloud infrastructure software market with a share of over 40 percent.

VMware has the second-largest share at just under 20 percent. Cisco and Hewlett Packard Enterprise hold the highest market share in public and private cloud hardware. Dell was third in both hardware categories. IBM, EMC, Lenovo, and Huawei were other vendors with substantial market share.

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“With spend on cloud services growing by over 50 percent per year and spend on SaaS growing by over 30 percent, there is little surprise that cloud operator capex continues to drive strong growth in public cloud infrastructure,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “But on the enterprise data center side too we continue to see a big swing towards spend on private cloud infrastructure as companies seek to benefit from more flexible and agile IT technology. The transition to cloud still has a long way to go.”

In a soft quarter typical for the beginning of the year, infrastructure sales grew by 13 percent annualized in Q1, and 20 percent over the past year.

Synergy calculated total public cloud revenues at $20 billion per quarter as of September.

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