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HP and IBM battle for cloud equipment market leadership; Cisco closes the gap
Posted on 27-Mar-2012 11:20. | Tags Filed under: News.

Synergy Research Group has published 4Q11 Cloud Equipment Market Share report, providing quarterly revenues and market shares for computing systems, storage systems and networking infrastructure that are used to support the provision of public and private cloud services.

The fourth quarter of 2011 saw cloud equipment revenues reach US$10.6 billion, giving a 2011 total of US$39.4 billion -- up 15% from 2010. North America continued to account for the largest share of the worldwide market (43%), but growth rates in both the EMEA and Asia-Pac regions were substantially higher than North America.

IBM saw a year-end spike in revenues and almost caught up with HP in the fourth quarter, but for the year as a whole HP maintained a gap and accounted for 17.4% of worldwide revenues, compared to 15.9% for IBM. It is notable that HP grew its cloud equipment revenues by 10% in 2011 while IBM's growth was just 2%; in 2010 the two companies were virtually tied for the position of lead vendor in this segment.

Meanwhile, networking giant Cisco registered revenue growth of 23% from 2010 to 2011 and closed the gap on its computing competitors. Indeed, in North America Cisco was essentially tied with HP and IBM for market leadership in the final quarter of 2011. It dominates the networking segment of the market and is also making an impact on the computing systems segment via its blade servers.

"Cloud services are clearly a game changer in the market and we're seeing huge growth in interest, service launches, and customers," said Jeremy Duke, Founder & Chief Analyst, Synergy Research Group. "The vendors that provide infrastructure for cloud services have the opportunity to benefit greatly from this surge -- you don't see many US$40 billion markets growing by 15% per year."

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