Enterprise IT infrastructure spend was strong in 2018 – with future outlook steady

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Enterprise IT infrastructure had a more than solid year with spending jumping 13% in 2018, according to the latest note from Synergy Research.

Aggregate revenues for the last four quarters hit $125 billion, with data centre servers being both the most lucrative market and the highest growing, at almost 26% year over year.

As ever, the cloudy side of the house saw greater gains, with data centre and hosted and cloud collaboration the only areas to beat the average growth rate in 2018. The switches and routers market, whilst at more than $25 billion globally last year, saw only a 3% growth. On-premises collaboration saw a decline, while network security and WLAN both had single digit growth.

When it came to vendor share, Cisco remains dominant. The company’s market share over the past four quarters (Q417 to Q318) was set at 23% across all segments, down two percentage points from the previous analysis. Despite this slowdown Cisco ranked well ahead of HPE (11%) in second.

Other vendors noted by Synergy as being strong in a particular segment include Dell EMC, in enterprise data centre servers, Huawei, for switchers and routers, and Microsoft for collaboration.

Lenovo, RingCentral and Twilio were cited as companies who had seen significant growth across the space in 2018.

“After some pretty anaemic growth in the previous years we saw enterprise spending on IT infrastructure pick up at the end of 2017 and continue to grow strongly throughout 2018,” said Jeremy Duke, Synergy Research founder and chief analyst. “Despite the booming demand for public cloud services, 2018 saw strong growth in enterprise spending on private data centre equipment. We also saw the ongoing swing in emphasis away from on-premise collaboration products and towards hosted and cloud collaboration solutions.

“2018 turned out to be a standout year, but our forecasts do still show continued steady growth over the next five years,” Duke added.

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