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Public cloud services market exasperation


Last week, Synergy Research Group, a leading technology market tracker, issued its quarterly Synergy press release quantifying the latest in vendor performance in the fast growing cloud infrastructure equipment market. The Cloud Infrastructure equipment market includes servers, storage, networking hardware and the associated cloud computing, cloud management, and cloud security software. HP was recognized as “dominating the cloud server segment and being a main challenger in storage.


Much hype for years has been justifiably focused on the cloud infrastructure services market, including Synergy’s own recent research showcasing the top four cloud providers: Amazon, Microsoft, IBM and Google. It’s interesting to note the size and trajectories of these markets:


  • The equipment market is now running “at some $16 billion” per quarter, growing 25% year-over-year.
  • The services market is now approaching “$6 billion” per quarter. The top four providers grew by 84% year-over-year, while the remaining market grew by 33%.

Look again at that first bullet. A $16 billion market per quarter growing 25% per year is fairly substantial – by I expect even CNBC’s Jim Cramer’s Mad Money views – and should not continue to be discounted. This is both the market for private cloud and equipment for public clouds in the services market.


While it’s super to surpass all competitors as the sole #1 provider in the equipment market, I’d like to dive into the often overlooked private cloud landscape. This has been HP’s strategy for HP Helion for the last few years. Many enterprise applications (traditional and cloud native), and sensitive data and workloads, are not ideally suited for general purpose public clouds. They seek the benefits of cloud computing (self-service, automation, developer-friendly APIs) but the security and protection of on-premise or secure-location deployments. We often talk about this as the Right Mix of private and public, and this varies largely by industry (more to come in future posts).


That is where this Synergy Research is most interesting. Take a look at the private cloud trends in this important part of the hybrid world. Notice a continued upward trajectory for HP and HP Helion:


 synergy private cloud.jpg


We continue to believe that the road to hybrid cloud begins with private cloud. And, the market size and sales data shows this to be a sound and lucrative strategy. While AWS and Microsoft Azure are great general purpose public clouds that we are happy to help customers utilize and control, the private cloud market is legitimate, large, and rapidly growing. We are happy to own it. Our customers are too.



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Jan 30-31, 2018
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