Date: Tuesday, June 25, 2013

CLOUD INFRASTRUCTURE EQUIPMENT

Q1 2013 WORLDWIDE
MARKET SHARE ANALYSIS

MARKET SHARE REPORT
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Date: Tuesday, June 25, 2013

Research Service: Cloud Infrastructure
Quarter: Q1 2013

Author: Jeremy Duke, Michael Fuetsch
Tags or Key Words: Cloud Infrastructure Equipment, Worldwide, Q1 2013

SUMMARY
Synergy Research Groups Cloud Infrastructure Equipment research service provides quarterly analysis,
vendor market share, market size, and forecasts for the following segments:

Cloud Infrastructure Equipment
o Cloud Networking Infrastructure
! Cloud Networking Infrastructure Public, Hybrid, and Public
o Cloud Computing Systems
! Cloud Computing Systems Public, Hybrid, and Public
o Cloud Storage Systems
! Cloud Storage Systems Public, Hybrid, and Public
o Cloud Management
! Cloud Management Public, Hybrid, and Public
o SaaS Application Licenses
! SaaS Application Licenses Public, Hybrid, and Public

Synergy defines Cloud Infrastructure Equipment as the data center infrastructure (computer, storage,
networking and software elements) that is deployed to provide cloud services. Cloud services are defined
as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). The
characteristics of a Cloud service include scalability, elasticity, on-demand, pay-per-use, and self-service
provisioning.

While Cloud Infrastructure is comprised predominantly of virtualized data centers, there are some non-
virtualized configurations being used to deploy Cloud services. Synergy defines virtualization as the
creation of virtual machines, which appear and function as a standalone hardware platform and associated
operating system. The purpose of virtualization is to improve scalability and hardware-resource utilization.
Applications and software running on a virtual machine are separated from the underlying computing
and/or storage resources.

Cloud provides service providers the ability to build new revenue-generating services and enables private
enterprises the ability to maximize their IT resources. A Public Cloud is a data center that resides behind a
service providers firewall, which supports Cloud services to subscribers over the Internet.

A Private Cloud is a data center that resides behind a companys firewall providing cloud services, where
services and IT resources are only accessible to the users of that particular organizations network.


TOTAL CLOUD INFRASTRUCTURE EQUIPMENT

In Q1 2013, the Cloud Infrastructure Equipment market as a whole totaled revenue of $9.69 billion, an
annual year-over-year increase of 0.5%. On a quarterly basis, revenue decreased 12% due to a decrease of
$1.322 billion from Q4 2012 to Q1 2013.


Source: Synergy Research Group

The top five Cloud Infrastructure Equipment revenue market share leaders worldwide for Q1 2013 were
Cisco (15.4%), IBM (14.5%), HP (14.2%), Dell (8.9%), and EMC (6.9%).
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Source: Synergy Research Group

Cisco increased revenue by 13.8% yearly to $1.491 billion in revenue. IBM experienced a decrease of
33.1% quarterly and a year on year decrease of 14.5% with $1.405 billion in revenue. HP decreased
revenue by 19.8% quarter on quarter to $1.377 billion, and Dell decreased by 2% to $862 million. Lastly,
EMC increased by 7.8% to $665.9 million.
Source: Synergy Research Group

In Q1 2013, Cloud Computing Systems continued to represent the largest segment of the Cloud
Infrastructure market with 51.29%, followed by Cloud Networking Infrastructure with 22.74%, Cloud
Storage Systems with 21.3%, Cloud Management with 3.42%, and SaaS Application Licenses with 1.25%.

Source: Synergy Research Group

Q1 2013 summary of Cloud Infrastructure segments:


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1Q12 2Q12 3Q12 4Q12 1Q13
Cloud Networking
Infrastructure
$2,330,524,122 $2,381,714,330 $2,471,222,050 $2,504,452,233 $2,460,928,849

Cloud Computing Systems $4,738,289,306 $5,019,744,639 $4,784,167,551 $5,650,408,405 $4,426,674,340

Cloud Storage Systems $2,139,320,824 $2,208,905,894 $2,237,168,070 $2,346,654,290 $2,348,081,108

Cloud Management $316,840,262 $342,749,530 $361,946,973 $376,536,040 $327,966,704

SaaS Application Licenses $119,960,848 $124,940,745 $134,382,306 $137,208,240 $128,823,580

Total Cloud Infustructure
Equipment
$9,644,935,362 $10,078,055,138 $9,988,886,951 $11,015,259,209 $9,692,474,581

1Q12 2Q12 3Q12 4Q12 1Q13
Cloud Networking
Infrastructure
24.16% 24.71% 23.63% 24.74% 22.74%
Cloud Computing Systems 49.13% 47.96% 49.80% 47.89% 51.29%
Cloud Storage Systems 22.18% 22.69% 21.92% 22.40% 21.30%
Cloud Management 3.29% 3.36% 3.40% 3.62% 3.42%
SaaS Application Licenses 1.24% 1.27% 1.24% 1.35% 1.25%



MARKET SHARE ANALYSIS

CLOUD NETWORKING INFRASTRUCTURE

In Q1 2013, the Cloud Networking Infrastructure market totaled revenue of $2.460 billion, an annual year-
over-year increase of 5.6%. On a quarterly basis, revenue increased 1.4% as a result of $43.5 million in
growth from Q4 2012 to Q1 2013.

Source: Synergy Research Group
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The top five Cloud Networking Infrastructure revenue market share leaders worldwide for Q1 2013 were
Cisco (52.1%), Brocade/Foundry (9.4%), Juniper (8.1%), F5 (4.7%), and QLogic (2.5%).
Source: Synergy Research Group


Cisco continued to lead the competition with $1.282 billion in revenue, increasing 4.9% this quarter.
Brocade/Foundry decreased revenue by 12.4% quarter on quarter to $230.9 million, while Juniper
decreased by 9% to $199.4 million. F5 decreased 3.7% to $115.7 million in revenue, and QLogic decreased
by 8.2% to $62.6 million.


Source: Synergy Research Group

CLOUD COMPUTING SYSTEMS

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In Q1 2013, the Cloud Computing Systems market totaled revenue of $4.426 billion, an annual year-over-
year decrease of 6.6%. On a quarterly basis, revenue decreased by 21.7% as a result of a $1.223 billion
decrease from Q4 2012 to Q1 2013.

Source: Synergy Research Group

The top five Cloud Computing Systems revenue market share leaders worldwide for Q1 2013 were HP
(25%), IBM (21.8%), Dell (16.3%), VMware (9.7%), and Oracle (5.3%).

Source: Synergy Research Group

HP led its competition with $1.708 billion in revenue, with a decrease of 22.6% this quarter. IBM
decreased revenue by 43.5% quarter on quarter to $965.1 million, and Dell increased by 1.3% to $720.9
million. VMware decreased by 18.7% to $429.5 million in revenue, and Oracle decreased by 10.1% to
$232.6 million.
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Source: Synergy Research Group

CLOUD STORAGE SYSTEMS

In Q1 2013, the Cloud Storage Systems market totaled revenue of $2.348 billion. On a quarterly basis,
revenue increased 0.7% as a result of $1.4 million increase from Q4 2012 to Q1 2013.

Source: Synergy Research Group

The top five Cloud Storage Systems revenue market share leaders worldwide for Q1 2013 were EMC
(28.4%), IBM (18.7%), NetApp (14.5%), Hitachi (10.1%), and HP (8.9%).
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Source: Synergy Research Group

EMC led its competition with $665.9 million in revenue, after a quarterly increase of 9.2%. IBM increased
revenue by 10.9% quarter on quarter increasing to $440.1 million, while NetApp increased by 7.4% to
$341.4 million. Hitachi increased by 5.1% to $236.3 million in revenue, and HP decreased by 3.4% to
$209.3 million.


Source: Synergy Research Group






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Copyright. Synergy Research Group Incorporated 2013. All rights reserved.
Any reproduction in whole or in part is prohibited without the direct permission from Synergy Research Group Incorporated. The contents of this report
represent Synergy Research Group Incorporated's interpretation and analysis of statistics and information collected from authorized company representatives.
These statistics and information are generally available to the public. In cases where statistics and information are not available, Synergy Research Group
Incorporated has made estimates. SRG Synergy Research Group Incorporated does not guarantee the accuracy or completeness of the statistics and
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