Data Center Equipment CAPEX for the US Hyperscalers Returns to Growth in 2Q19; Commodity Price Declines Remain in Compute and Storage while Networking Grows Robustly
PORTOLA VALLEY, Calif. August 8, 2019 — According to a newly released report issued by founding analysts of 650 Group, US Hyperscaler Cloud market revenue grew 25% Y/Y in 2Q19 while CAPEX used for DC Equipment returned to growth with mid-teen Y/Y results.
650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social.
The Cloud reports includes CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets including unique look at spending specifically for data center equipment. Going beyond just Cloud revenue provides a unique look into where and how the largest Cloud providers deploy equipment. In the report, you can see the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building out their own infrastructure.
“2Q'19 Cloud results rebounded strongly albeit with very mixed results,” said Alan Weckel, founding analyst for 650 Group. “Strong networking growth in 2Q19 remained 100 Gbps dominated with minimal 400 Gbps shipments. Strong commodity price declines remained in parts of the supply chain. Our forecast projections for the remainder of 2019 and early 2020 remain unchanged as we analyzed results and continue to expect uneven CAPEX growth amongst the US hyperscalers for the remainder of the year.”
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies. 650 Group focuses on leading edge market trends and research and prides itself on first to market research.
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