2017 a record year for infrastructure shipments – Cisco, Dell EMC and HPE account for 50%
Palo Alto, Shanghai, Singapore and Reading (UK) – Wednesday, 14 March 2018
The value of worldwide infrastructure shipments, including servers, storage and networking products, reached a record US$142 billion in 2017, up 7% on the previous year. Strong growth in servers was the primary factor. Rising DRAM component costs and increasing demand for higher server specifications resulted in ASPs increasing faster than unit shipments. This, combined with ongoing data center expansion by hyperscale cloud service providers, and the start of a new enterprise refresh cycle following the launch of the next generation of Intel and AMD processors, increased server shipment value to US$66 billion. Storage returned to growth after a period of disruption, as spending moved to all-flash and software-defined products. These offset the decline in traditional HDD storage arrays. Networking continued to grow, as investment in data center switching and 11ac Wave 2 wireless LANs for campus and branch environments remained strong. Overall, Ethernet switching grew 7% and wireless LANs were up 9%. Service provider routing remained positive at 1%, but enterprise routing fell 9%.
2017 was also a strong year for the channel selling servers, storage and networking. “The channel continued to dominate infrastructure shipments, collectively representing 74% of the worldwide total,” said Canalys Principal Analyst Matthew Ball. “But direct grew faster, due to the increasing role of Chinese and Taiwanese ODM server vendors selling large volumes to cloud service providers. Direct accounted for 34% of server shipments, compared with 19% for storage and 20% for networking. The massive capital expenditure planned by the hyperscale cloud service providers in upgrading and expanding existing data centers, as well as increasing their geographic presence, will maintain this trend in 2018.”
The top three infrastructure vendors in 2017 were Cisco, Dell EMC and Hewlett Packard Enterprise (HPE), which collectively accounted for 50% of total worldwide shipments. “Cisco’s dominance in networking helped it maintain its lead of 20% in the overall infrastructure market. Its focus is on moving its predominantly hardware-centric customer base to software and subscriptions,” said Ball. “Dell EMC completed its first full year of operations, following the US$67 billion merger in September 2016, making it a leader in servers and storage. It grew its share of infrastructure shipments to 15% and was one of the fastest-growing vendors through the channel. HPE’s share of infrastructure shipments was 14%. The focus of its server business has shifted to higher-value segments, with growth in HCI and HPC. The acquisition of Nimble boosted its storage business last year, while Aruba is driving growth in wireless LANs as part of its intelligent edge strategy.”
For more information, please contact:
Canalys EMEA: +44 118 984 0520
Matthew Ball: email@example.com +44 118 984 0535
Canalys APAC (Shanghai): +86 21 2225 2888
Daniel Liu: firstname.lastname@example.org +86 21 2225 2817
Canalys Americas: +1 650 681 4488
Alex Smith: email@example.com +1 650 681 4486
Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.
To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please complete the contact form on our web site.
Alternatively, you can email firstname.lastname@example.org or call +1 650 681 4488 (Palo Alto, California, USA), +65 6671 9399 (Singapore), +86 21 2225 2888 (Shanghai, China) or +44 118 984 0520 (Reading, UK).
For more information: