October 26, 2020

Spending by infrastructure operators jumped 32% in the public cloud

The MDGs have gained the lion’s share of a public cloud infrastructure market where operator spending jumped 32% in the first quarter of 2018.

The role of Original Design Manfufacturers (ODMs) in the datacenters of public cloud service operators continues to expand, to the detriment of well-established brands. According to research firm Synergy Research Group, they attracted 30% of the investment in software and IT infrastructure equipment from Amazon Web Services, Microsoft Azure, Google Cloud Platform and others in the first quarter of 2018. The cumulative market shares of the MDGs, who traditionally design and manufacture products on behalf of third-party brands, are superior in value to those of Dell EMC, Cisco, and HPE. Each one of them only captures 5 to 10% of the infrastructure expenses of public cloud operators. Then come Microsoft, Huawei and VMware.

An outstanding first quarter in more ways than one

The continued ramp-up of the MDGs is taking place in a public cloud infrastructure market that generated $ 11 billion in revenue between January and March, well above the $ 10 billion mark in just two more quarters early. Revenues recorded in the first quarter of 2018 are up 32% compared to the same period a year earlier. This is the highest growth recorded in nine quarters. In these 27 months, the increases recorded were between + 10% and + 20%. The evolution of the first quarter of 2018 is all the more surprising as the beginning of the year is often the scene of a net decrease in purchases following a traditionally strong fourth quarter. However, the investments of public cloud operators fell by only 2% between the last fourth and first quarters.

Networks and the application remain dominated by the big brands

Of the $ 11 billion invested by operators between January and March of last year, 95% went towards the acquisition of servers, operating systems, storage products, network equipment and virtualization software. The balance was spent on security solutions and cloud infrastructure management. In detail, Synergy Research finds that the server and storage segments are dominated by ODMs, monitored remotely by Dell EMC, Cisco, and HPE. Cisco, however, has a clear lead in the field of network equipment. For their part, Microsoft and VMware are in first position in the infrastructure software segment.

McDonald’s, NASA, Netflix, Starbucks and Canal +

The new financing will allow Nginx to open new international offices, particularly in Asia-Pacific, and strengthen its partnerships, particularly with Google, IBM and Okta. The publisher will also introduce new product lines. Apart from Nginx Plus, the publisher’s catalog includes four other software packages: the centralized controller monitoring solution, the Unit application server, the WAF firewall and the Amplify performance monitoring tool available in SaaS mode.

Among its software users are McDonald’s, NASA, ING Bank, Netflix, Starbucks and WordPress.com. In France, its solutions are used by Canal +. In his post, Gus Robertson emphasizes the role played by the testimony of his clients in the interest shown by potential investors. Without the experience shared by the very first users of Nginx Plus, the company would have “never been able to lift” its Series B financing, believes the CEO.

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