Cloud IT Infrastructure Spending has grown in Q1 2020 and VMware takes 42% of the HCI Software market

Cloud IT Infrastructure Spending has grown in Q1 2020 and VMware takes 42% of the HCI Software market

By Cobus Smit – 29 June 2020 – Thanks to IDC

Cloud IT Infrastructure Spending

IDC announced that the Worldwide Quarterly Cloud IT Infrastructure Tracker, vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, increased 2.2% in the first quarter of 2020. Other investments in non-cloud infrastructure plunged 16.3% year over year.

COVID-19 pandemic was a major factor driving infrastructure spending in the first quarter. Lockdowns across the world and closed economies contributed a more than usual usage for cloud-based consumer and business services driving even more demand for server, storage, and networking infrastructure utilized by cloud service providers. This contributed that public cloud like AWS, Azure, and GCP was the one gaining revenue in the thirst quarter 2020 reaching over $10 billion in IT spending on infrastructure at 6.4% year-over-year growth. Spending on private cloud infrastructure declined 6.3% year over year in 1Q to $4.4 billion.

Spending in 2020 will be most on the following;

  • Ethernet switches (all the software-defined stuff) The Ethernet switch segment will grow at 3.7% year over year.
  • Compute, and storage platforms
  • Compute platforms will remain the largest category of spending on cloud IT infrastructure at $36.2 billion while storage platforms will be the fastest-growing segment with spending increasing 8.1% to $24.9 billion. Dell Technologies took the first place again in Hyperconverged systems with 13% growth year on year.

At the regional level, year-over-year changes in vendor revenues in the cloud IT Infrastructure segment varied significantly during 1Q20:

VMware takes 42% of the HCI Software market

IDC also released Q1 report on HCI Software rankings. VMware as the biggest player lead by 42%

If we compare VMware with the previous year then we see a 10% growth – not bad at all in these times! The nice thing about VMware is that it runs across any cloud, you can use the same software in any of your cloud environments.

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