Synergy: Microsoft, HP dominate $114B data center infrastructure market

Service provider and enterprise spending on data center infrastructure over the past four quarters continued to rise, reaching $114 billion, accounting for 23 percent of the total, says a new Synergy Research report.

Microsoft (NASDAQ: MSFT) and VMware lead the software market, commanding nearly 90 percent of the software revenues.

Over in the hardware side of the market, the top four companies--HP, Cisco, Dell and IBM--account for 54 percent of aggregate revenue. HP leads the data center hardware segment followed by Cisco, Dell and IBM. EMC, Lenovo, NetApp, Oracle, Fujitsu and Hitachi also have a strong presence in this market segment.

According to Synergy, total spending on data center equipment over the past four quarters grew 6 percent versus earlier quarters, with software jumping 14 percent and hardware growing by 4 percent.

Within the data center segment, the majority of growth was seen in virtualization applications, server OS, blade servers and storage applications.  

John Dinsdale, chief analyst and research director for Synergy Research said that while cloud is an emerging driver of data center growth, a large portion of data center investment is driven by non-cloud applications.

"However, the industry and media focus on cloud does tend to hide the fact that almost half of all data center investment is still accounted for by traditional non-cloud applications," said Dinsdale in a release. "That part of the data center market remains enormous and will remain a prime source of revenue for vendors for many years to come."

Synergy Research data center market

For more:
- see the release

Related articles:
Amazon Web Services outshines Microsoft, IBM in the cloud market, says Synergy
Synergy: Cisco retains lead in public cloud, while HP dominates private cloud market
Synergy: Cisco, HP vie for the top spot in the cloud infrastructure market
Synergy: U.S., Japan, UK and China drive worldwide retail colocation revenues
Cisco's service provider routing market share rebounds with APAC, EMEA growth, says Synergy