World’s biggest cloud platforms spend huge amount off $11 billion on hardware and software in the latest three months in 2018 said market analyst.
A report by Synergy Research Group, stated that many big companies such as Amazon, Microsoft, Facebook and Alphabet’s Google with some other spend north of $11 billion for storage, networking, servers, also for operating system licenses and virtual software in its first quarter of 2018 which is eventually 32% more amount than spend previous year- ” the best growth was observed in first nine quarters.”
Synergy Research added “this time the revenue generation was only 2 percent less than previous quarter. First quarter revenue was down from “seasonally strong from fourth quarter “.
Market analyst has noticed same kind of growth for various types of market players. In the first quarter, both Chipmakers Intel and Broadcom had huge revenue collection, and the collection of revenue from server sales raised by 39 percent noticed in third consecutive quarter of twice – digit growth said another market researcher IDC.
“The demand is high who can provide strong cloud services across the market, who can also refresh market with hardware, companies are making software-defined infrastructure, rising of huge workloads of next generation and market is asking for new CPUs, IDC added.
IDC has found big companies who are fulfilling the demands of server volume in the first quarter. Synergy Research has developed their own parameters to call any company a big company, by using those parameters Synergy Research have found 24 hyperscalers. The company calculates their data center infrastructure as the tens of thousands of servers.
“According to sales market share, ODMs are managing to run along with the market and now account for almost 30 percent of revenue, ” said Synergy Research.
According to Synergy Research, ODMs had managed 25% more in the first quarter. Dell EMC, Cisco, Hewlett Packard Enterprise both had 5 to 10 percent of market share. On the other side Microsoft, VMware and Huawei each had 3 to 5 percent market share.
“Leading companies like Quanta, Wistron, Inventec, Sanmina, and Flextronix along with some other companies had ODMs of 25 percent market share,” said John Dinsdale, chief analyst and research director for Synergy Research Group.
Many companies are working hard to touch the same revenue generation as these companies to get maximum profit from market sales.