November 28, 2011 –  Cloud infrastructure equipment sales are expected to exceed $33 billion by the end of the year, with HP, IBM and Dell ranking as the top vendors early on in 2011, according to independent analysts Synergy Research Group.

More than $17 billion of that sales figure occurred in the first half of 2011. Public cloud platform spending represented 56 percent of all cloud infrastructure spending in the first half of the year. The private cloud platform – which Synergy defines as a virtualized data center behind an enterprise’s firewall – registered as the fastest growing of the overall cloud infrastructure market, with 30 percent annual growth in 2011.

When backed by advanced communications and applications, the much-touted savings from cloud adoption are becoming a “game changer” for enterprises, said Jeremy Duke, Synergy founder and chief analyst, in a news release on the report. The growth in cloud sales in 2011 is expected to continue in the coming years as businesses take on more as-a-service investments, particularly with Platform as a Service and Infrastructure as a Service, Duke said.


Click here for a quick-hit slide show of as-a-service definitions.


“From small start ups being able to access massive scale computing facilities to new cloud-based consumer services, cloud will continue to open up a wealth of opportunities for innovation,” said Duke.

Overall, HP ranked as the top cloud infrastructure equipment provider based on sales in the first half of 2011, with more than 19 percent of the market share, according to Synergy. Second was IBM with 17.9 percent, followed by Dell (14.7 percent), Cisco (10.4 percent) and Oracle (5.2 percent), the research group reported. Different segmentations in the cloud and virtualized marketplace saw a wider range of lead vendors. Cisco totaled nearly half of the networking infrastructure for cloud deployment sales, while HP and IBM took in more than 50 percent of virtualized computing system sales. Synergy reported that Dell, NetApp and HP held about 50 percent of the cloud storage market for the first half of 2011.

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