HPE is leading the enterprise data center hardware, while Cisco the service provider data center hardware and Microsoft leads the data center software markets in Q3 2015.
Spending on the total data center infrastructure increased 3 percent to $29 billion, with most of the growth coming from service provider hardware which grew over 20 percent in Q3 2015.
Synergy Research Group said enterprise hardware accounts for over half of the market and HPE extended its lead and grew its market share to 24 percent. Dell and Cisco are the second and third largest players in the enterprise data center market.
Service provider data center hardware, which is smaller market than enterprise, is growing strongly in contrast to the flat enterprise market.
“Data centers are the foundation of cloud services and this has driven annual spending on data center networking, compute and storage toward the $120 billion mark,” said Jeremy Duke, founder and chief analyst at Synergy Research Group.
The large scale adoption of public cloud services has created the need for widespread deployment of hyperscale data centers and has led to record spending on service provider data center equipment.
Cisco leads the service provider data center market thanks to its leadership in the global data center networking and its growing server business. HPE and Dell are in the second and third positions in the service provider data center market.
Microsoft dominates the data center software market, the smallest of the three segments, while VMware has the second position.
Data center infrastructure includes servers, server OS, storage, networking, network security and virtualization software. Virtualization software, blade servers and integrated security platforms posted the highest growth. The largest single product segment is rack servers which account for 34 percent of the total market.