Hyperscale Operators Account for a Third of Data Center Hardware and Software Spending
Driven by demand for public cloud services and continued growth in social networking
RENO, Nev. — New data from Synergy Research Group shows that hyperscale operators accounted for 33% of all spending on data center hardware and software as of the third quarter (Q3) of 2019, up from 26% in Q3 2017 and 15% in Q3 2014. Over that same period, the total market has increased in size by over 34%, with the vast majority of the growth resulting from increased spending by hyperscale operators. Spending by enterprises and service providers has risen by just 6%.
The increase in hyperscale spending is driven by the burgeoning demand for public cloud services and continued strong growth in social networking. Meanwhile, enterprise spending has remained under pressure primarily due to the ongoing shift in workloads from private networks to the public cloud. Hyperscale operators include the world’s largest providers in the fields of infrastructure, platform, or software as a service (IaaS, PaaS, SaaS), search, social networking, and e-commerce.