
3dmentat - Fotolia
Growth of hyperscale operators risks squeezing smaller players out of cloud, research warns
As the hold of the hyperscale datacentre operators on the wider cloud market tightens, Synergy Research Group looks at the impact their influence is having on the wider IT market
The growing hold the hyperscale datacentre operators have on the cloud market risks squeezing smaller providers out, warns Synergy Research Group’s latest report.



Datacentres - 5% of the world's global energy
Don't be a Trump. Datacentres currently represent 3 to 5% of the world's energy. That's the same as the entire aviation market. Your environment needs you! Do your part and click here.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.
The analyst house has tracked the growth of the hyperscale operators since 2012, and singled out 24 firms – including the likes of Amazon, Google, Microsoft and IBM – who fall into this category.
Synergy claims the hyperscale datacentre operators collectively accounted for around 47% of the overall cloud infrastructure services and software market, when it first started tracking the market.
Fast forward to 2016, and the company claims 68% of the providers in the cloud infrastructure services market can now be classified as hyperscalers, and 59% of software as a service (SaaS) firms also fall into this category.
According to Synergy’s estimates, these firms operate close to 320 large datacentres, across multiple geographies, and as their presence increases the non-hyperscale cloud firms may find themselves struggling to compete.
“The scale of infrastructure investment required to be a leading player in cloud services or cloud-enabled services means that few companies are able to keep pace with the hyperscale operators,” said Synergy Research Group, in a statement.
“They continue to both increase their share of service markets and account for an ever-larger portion of spend on datacentre infrastructure equipment – servers, storage, networking, network security and associated software.”
Read more about hyperscale cloud trends
- The growing demand for cloud services contributed to record amounts of colocation space being acquired across Europe throughout 2016, confirms CBRE.
- Demand for colocation space across the continent is soaring as the hyperscale cloud providers rush to build out their European presence, but not all datacentre operators will feel the benefit.
The impact the hyperscale cloud firms are having on the IT landscape has emerged as a major talking point amongst the analyst community over the past year or so.
Indeed, CBRE set out details of how the spending power of the hyperscalers means they now have the clout to dictate to colocation firms how to build out their new sites in February 2017.
Meanwhile, with many hyperscale firms favouring the use of original design manufacturers’ (ODM) hardware, and white-box servers Synergy, among others, have pointed to the destabilising affect this is having on the sales of big-brand IT hardware sales.
John Dinsdale, chief analyst and research director at Synergy Research Group, backed this point, and stated the growth of the hyperscale datacentre providers is having a wide range of impacts on the IT industry.
“They are reshaping the services market, radically changing IT spending patterns within enterprises, and causing major disruptions among infrastructure technology suppliers,” he said. “Our latest forecasts show these factors being accentuated over the next five years.”
Read more on Datacentre capacity planning
-
IaaS emerges as fastest-growing sector of the global public cloud market
-
Ministry of Justice CDIO Tom Read claims CIO role will succumb to cloud
-
Bitcoin burglaries: Icelandic police count cost of cryptocurrency kit thefts from datacentres
-
Blockchain investment firm acquires Swedish colocation provider Hydro66
-
IaaS emerges as fastest-growing sector of the global public cloud market
-
Ministry of Justice CDIO Tom Read claims CIO role will succumb to cloud
-
Bitcoin burglaries: Icelandic police count cost of cryptocurrency kit thefts from datacentres
-
Blockchain investment firm acquires Swedish colocation provider Hydro66
Start the conversation
0 comments