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HP, IBM Still Trail Cisco in Cloud Infrastructure Equipment

By Daniel Santa Cruz
September 25, 2013 - News

After taking the top spot for the first time in the first quarter of 2013, second-quarter data from Synergy Research Group shows that Cisco maintained its lead in the cloud infrastructure equipment market.

"After steadily and consistently building its share in this market Cisco has done well to hold onto its newly won lead," said Jeremy Duke, founder and chief analyst at Synergy Research Group. "We are forecasting that there will be a continued steady market growth for data center generally and for cloud infrastrucutre specifically, but we are also predicting that the mix of spend will trend slowly away from computing systems and towards storage and networking. That presents IBM and HP with an extra challenge in combating Cisco's leadership."

After reaching a historic low in the first quarter, longtime leader IBM was able to bounce back, but not by enough to close the gap with Cisco. HP's share fell to just a little over 14 percent.

Quarterly revenue from cloud infrastructure passed the $10 billion milestone after declining in the previous quarter. Second-quarter revenue totaled $10.1 billion, a 6 percent increase; meanwhile, annual growth has declined to just 2 percent. Computing systems' share of total cloud infrastructure equipment revenue rose slightly, to 47 percent, while networking accounted for about a quarter of total revenue, and storage, 22 percent. The balance of the market consists of cloud management and SaaS application licenses.

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