New data from Synergy Research Group, shows that across seven key enterprise infrastructure segments, vendor revenues for the last four quarters declined by 1% on an annualised basis.
Aggregate revenues for the last four quarters reached $88 billion, with revenue in each of the last twelve quarters typically in the $20-23 billion range. Data centre servers comprise the largest segment of the market though revenues here declined by almost 5% in 2016. Switches and routers are the second-largest segment and they experienced growth of 1%. WLAN grew the most, while the enterprise voice and telepresence markets continued to be challenged by aggressive price competition and market disruption.
Cisco is the market leader in six of the seven segments with the exception of data centre servers where HPE is the leader. The number two ranked vendors in the other segments are Dell EMC (enterprise data centre servers), Avaya (enterprise voice systems), Juniper (network security), Microsoft (UC applications) and Polycom (telepresence). Vendors who have been achieving steady market share growth in these highly competitive markets include Palo Alto Networks (network security), Arista Networks (Ethernet switching), Huawei (Ethernet switching), HPE (WLAN) and Dell EMC (servers).
“Cisco continues to control a third of the enterprise infrastructure market and remains in a league of its own despite a variety of challenges,” said Synergy Research Group’s founder and Chief Analyst Jeremy Duke.
“HPE is the only broad-based competitor to challenge Cisco’s dominance, though it does not compete in all of the major segments. The main disruption to the market is being provided by the growth of cloud and hosted solutions, which are redefining markets and enabling new competitors to emerge.”