In Q1 the two enterprise IT vendors were tied but in Q2 HP opened up a lead by achieving much stronger sequential revenue growth. HP maintained a 13 percent worldwide market share in Q2, while Cisco share in cloud market dropped by half a percentage point.
Microsoft, Dell, IBM, EMC, VMware, Lenovo and Oracle are the other top cloud infrastructure vendors.
Cisco continues to hold a commanding lead in public cloud infrastructure while HP has a clear lead in private cloud. Total cloud infrastructure equipment revenues, including hardware and software, rose 25 percent to nearly $16 billion.
HP’s cloud infrastructure leadership is due to dominating the cloud server segment and being a main challenger in storage, while Cisco’s position is due mainly to its dominating the networking segment while rapidly growing its position in servers.
Microsoft features in the ranking due to its position in server OS and virtualization applications, while Dell and IBM maintain a strong position across a range of cloud technology markets.
Servers, OS, storage and networking combined account for 89 percent of the cloud infrastructure market, with the balance comprising cloud security, cloud management and virtualization applications.
“The public cloud services market is booming and driving heavy investment in cloud infrastructure, while a rapid transition to cloud is also in full swing in the enterprise IT market,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst.
HP grew because of the fact that servers and storage account for almost two thirds of the market and HP is now rapidly evolving its huge business in these segments.
By contrast Cisco dominates the relatively much smaller networking segment, while its cloud server business still lags far behind HP in scale.