2016 IT spending cemented shift to cloud and security

Biggest losses were in data centre hardware spending, but network security and wireless LAN saw major gains as cloud-first strategies come to the fore

How did enterprise infrastructure spending fare in 2016? A wee bit down.

According to an analysis from Synergy Research Group, while many individual categories for enterprise IT infrastructure saw growth, a few key segments plunged heavily to bring overall spending down by 1%.

Much of that drop was due to steep declines in three categories that have long been decaying, and 3 to 8% growth in other categories was not quite enough to offset the general loss.

 

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Of the big winners, the second biggest jump was in network security (up 4%), as everything from ransomware to a nonstop barrage of hardware-level exploits have demanded enterprises step up their efforts. WLAN vendors saw the biggest percentage leap: almost 8%.

That said, these leaps were in markets that remain relatively small. WLAN’s worldwide market size is slightly more than $4 billion (€3.8 billion); network security clocks in at around $10 billion (€9.4 billion).

But when it comes to the two biggest market segments for enterprise IT spending — data centre servers, and switches and routers — the lack of growth there was felt strongly. Network hardware, around $27 billion (€25.5 billion) a year, barely edged out 1% growth, while data centre servers lost a whopping 5% — a huge slice for a market that is a $31 billion-a-year (€29.2 billion) business.

The declines are not hard to trace. As more IT is either migrated into the cloud or done there natively to begin with, there’s less of a demand by rank-and-file enterprise IT for conventional hardware. There is still clearly demand for networking devices, as you need that hardware to connect to your cloud data centre in the first place, but the big leap in WLAN sales points toward a growing market for supporting that connectivity in-house.

Two other areas that were hit hard in 2016 have both been losing out for a while. Enterprise voice systems — long on the wane since the arrival of unified communications (UC) systems and open source solutions like Asterisk — with a $7.5 billion (€7.1 billion) market share dropped about another 5.5%. Telepresence, a $2 billion (€1.8 billion) market that shrank 6% of its growth, has been dying off not only because of UC, but also because of consumer-level, commodity solutions like Skype. (UC itself, with a world market share about the size of WLAN’s, perked up by another 3%.)

If there is a single name that continues to dominate across all these different segments, and that is Cisco, says Synergy. The networking giant commands 33% of the total market share, or “market leads in six of the seven segments.” In the number 2 slot overall is HP Enterprise (16% market share), which has the mixed honour of being number 1 in data centre servers — the one category with both the biggest market share and some of the biggest losses across all the categories. Between those two, Cisco stands a slightly better chance of weathering the continued flight of enterprise IT to the cloud, since it can operate well on either side of that divide.

 

 

 

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placeholder: '+44 0000 000000', helpText: 'Include the JE country code +44 before the phone number', }, { countryCode: 'IM', placeholder: '+44 0000 000000', helpText: 'Include the IM country code +44 before the phone number', }, { countryCode: 'GG', placeholder: '+44 0000 000000', helpText: 'Include the GG country code +44 before the phone number', }, { countryCode: 'AL', placeholder: '+355 00 000 0000', helpText: 'Përfshini kodin e vendit AL +355 para numrit të telefonit', }, { countryCode: 'SM', placeholder: '+378 0000 000000', helpText: 'Includere il prefisso internazionale SM +378 prima del numero di telefono', }, { countryCode: 'FO', placeholder: '+298 000000', helpText: 'Inkluder FO landekode +298 før telefonnummeret', }, { countryCode: 'MT', placeholder: '+356 0000 0000', helpText: 'Include the MT country code +356 before the phone number', }, { countryCode: 'LI', placeholder: '+423 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die LI-Ländervorwahl +423 ein', }, { countryCode: 'GI', placeholder: '+350 000 00000', helpText: 'Include the GI country code +350 before the phone number', }, { countryCode: 'MD', placeholder: '+373 00 000 000', helpText: 'Includeți codul de țară MD +373 înaintea numărului de telefon', }, { countryCode: 'HU', placeholder: '+36 00 000 0000', helpText: 'A telefonszám előtt adja meg a HU országkódot +36', }, { countryCode: 'NZ', placeholder: '+64 00 000 0000', helpText: 'Include the NZ country code +64 before the phone number', }, { countryCode: 'ME', placeholder: '+382 00 000 000', helpText: 'Uključite ME pozivni broj države +382 prije telefonskog broja', }, ]; if (!countryCode || typeof countryCode !== 'string') { return mockPlaceholders[0].helpText; } const selectedHelpText = mockPlaceholders.find(function(item) { return item && item.countryCode === countryCode; }); return selectedHelpText ? selectedHelpText.helpText : mockPlaceholders[0].helpText; } function setDefaultHelpText(countryCode) { const helpTextSpan = 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: false; var shouldAppendCountryCode = smsNotRequiredRemoveCountryCodeEnabled ? isRequired : true; var phoneInput = document.querySelector('#mce-' + fieldName); if (phoneInput && defaultProgram.countryCallingCode && shouldAppendCountryCode) { phoneInput.value = defaultProgram.countryCallingCode; } displayFlag?.addEventListener('click', function(e) { dropdown.focus(); }); dropdown?.addEventListener('change', function() { const selectedCountry = this.value; if (!selectedCountry || typeof selectedCountry !== 'string') { return; } const flagSpan = displayFlag?.querySelector('#flag-emoji-' + fieldName); if (flagSpan) { flagSpan.textContent = getCountryUnicodeFlag(selectedCountry); flagSpan.setAttribute('aria-label', sanitizeHtml(selectedCountry) + ' flag'); } const selectedProgram = window.MC?.smsPhoneData?.programs.find(function(program) { return program && program.countryCode === selectedCountry; }); var smsNotRequiredRemoveCountryCodeEnabled = true; var smsField = Object.values({"EMAIL":{"name":"EMAIL","label":"Email Address","helper_text":"","type":"email","required":true,"audience_field_name":"Email Address","merge_id":0,"help_text_enabled":false,"enabled":true,"order":0,"field_type":"merge"},"FNAME":{"name":"FNAME","label":"First Name","helper_text":"","type":"text","required":false,"audience_field_name":"First Name","enabled":false,"order":null,"field_type":"merge","merge_id":1},"MMERGE2":{"name":"MMERGE2","label":"Second Name","helper_text":"","type":"text","required":false,"audience_field_name":"Second Name","enabled":false,"order":null,"field_type":"merge","merge_id":2},"MMERGE3":{"name":"MMERGE3","label":"Company Name","helper_text":"","type":"text","required":false,"audience_field_name":"Company Name","enabled":false,"order":null,"field_type":"merge","merge_id":3},"MMERGE4":{"name":"MMERGE4","label":"Job Title","helper_text":"","type":"text","required":false,"audience_field_name":"Job 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fieldName); updateCountryCodeInstruction(selectedCountry, fieldName); }); } document.addEventListener('DOMContentLoaded', function() { const smsPhoneFields = document.querySelectorAll('[id^="country-select-"]'); smsPhoneFields.forEach(function(dropdown) { const fieldName = dropdown?.id.replace('country-select-', ''); initializeSmsPhoneDropdown(fieldName); }); });

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