New Benefits in Cloud Computing

By Ryan Ayers
Updated: September 22, 2011

New Benefits in Cloud Computing

The wholesale adoption of cloud computing services worldwide has spiked an increase in the need for data center equipment, which in turn has created rapidly growing markets for networking and computing equipment providers for businesses. The data center equipment market, already growing at nearly 20% a year, shows more growth in the first two quarters of 2011 with networking infrastructure equipment accounting for nearly 15% of the market.

A report from Synergy Research Group shows growth of the global data center equipment market at approximately 10% between the last two quarters of 2010 and the first two quarters of 2011. Synergy interprets this to mean that there is room to grow for all network and data center equipment providers. “Strong market growth in all major world regions is creating new business opportunities,” said Jeremy Duke of Synergy, adding that the dominance of several leading providers does not indicate that there are not growth opportunities for other players in their markets.

The global data center equipment market is currently dominated by Cisco Systems, who commands a 49% market share, while the computing equipment market is still dominated largely by IBM and HP with a 30% share each. Many other providers are active and showing growth in both areas, and there are no signs of these particular markets slowing.

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