Cloud infrastructure equipment to exceed $33 billion in 2011

The cloud equipment market for the first half of 2011 exceeded $17 billion in sales and is expected to exceed $33 billion in 2011, according to a report by Synergy Research Group (Reno, Nev., U.S.A.)

The fastest growing segment of cloud computing is Private Cloud platforms, with a 30% annual growth rate. A Private Cloud platform is a virtualized data center, which resides behind an organization's firewall. According to Synergy, this growth will continue as larger enterprises realize the economies of scale and other cost benefits associated with the virtualization of their data centers.

Today, Public Cloud platforms represent the biggest share of Cloud Equipment spending, representing 56% in the first half of 2011. According to Synergy, Public Cloud deployments could potentially experience exponential growth in the coming years as IaaS, PaaS, and SaaS gain wider usage by both consumers and businesses.

"Cloud unleashes the power of utility computing that has never been seen before and it becomes a game changer when matched with advanced communications and applications," says Jeremy Duke, founder and chief analyst at Synergy Research Group. "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."

Top 5 vendors in first half of 2011 (Cloud equipment sales)


Market Share











Across the different Cloud equipment segments market leadership varies, says Synergy. For example, Cisco continues to be the dominant Networking Infrastructure supplier for cloud deployments with a market share approaching 50%. For Virtualized Computing systems, HP and IBM represent over 50% market share combined.  Dell, NetApp and HP comprise 50% of the Storage opportunity, according to Synergy.

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