Beancounters at Synergy Research have added up some numbers and divided by their collective shoe size and worked out that datacentre spending is now dominated by cloud.
Spending on public and private cloud datacentre equipment has grown to about two thirds of the total market.
Total datacentre infrastructure equipment revenues hit $30 billion in the second quarter of 2017, with public cloud infrastructure accounting for over 30 percent of the total and private cloud or cloud-enabled infrastructure accounting for over a third.
The public cloud has grown by 35 percent and private cloud by 16 percent over the last two years, traditional non-cloud datacentre hardware and software spending has dropped by 18 percent.
Synergy said the main beneficiaries of this market shift are the Asian ODMs, which in aggregate account for the largest portion of the public cloud market, its figures show. Cisco is the leading individual vendor in the public cloud space, followed by Dell EMC and HPE.
Dell EMC leads the private cloud segment followed by HPE and Microsoft, a trio which also control the declining non-cloud datacentre market.
Synergy chief analyst John Dinsdale said: cloud service revenues continued to grow by over 40 percent per year, enterprise SaaS revenue growing by over 30 percent, and search/social networking revenues growing by over 20 percent.
“It is little wonder that this is all pulling through continued strong growth in spending on public cloud infrastructure. While some of this is essentially spend resulting from new services and applications, a lot of the increase also comes at the expense of enterprises investing in their own datacentres. One outcome is that public cloud build is enabling strong growth in ODMs and white-box solutions, so the datacentre infrastructure market is becoming ever more competitive,” he said.