Dive Brief:
- Worldwide cloud IT infrastructure revenue grew 14.5% year over year in the second quarter of 2016, according to a new report from IDC.
- Total worldwide revenue for cloud IT infrastructure — which includes servers, storage and Ethernet switches for both the public and private cloud — reached $7.7 billion in the second quarter.
- Hewlett Packard Enterprise was the top worldwide cloud IT infrastructure vendor, with 16.4% of the market. HPE was followed by Dell, Cisco and EMC.
Dive Insight:
Though HPE is the current leader in the cloud IT infrastructure, the second quarter numbers are prior to the completion of the Dell/EMC merger, which in September created powerhouse Dell Technologies. The Q2 reporting cycle includes numbers from April, May and June of this year.
Now that the two companies have merged, the results of future evaluations may be much different. Dell had 13.1% of the market in the Q2 tracker, and EMC came in fourth with 7% of the market. Together, Dell Tech. would combine for 20.1% of the market and easily overcome HPE for the top spot.
Even with the challenge from Dell Tech., HPE is still dominant in the cloud IT infrastructure market. As enterprise technology shifts toward the cloud, companies still need the infrastructure equipment to build services on. As the competition plays out between the two major providers, customers could benefit from product perks intended to lure new clients.
