12 Nov Data center capex for U.S. hyperscalers grows 10% in Q3 – report
The U.S. hyperscaler cloud market had a growth spurt in the third quarter of this year with a 26% increase year-over-year in revenue, according to a report.The report, by 650 Group, stated capex for the data center equipment market grew 10% based on year-over-year results.
“Third quarter hyperscaler results were robust with strong growth in revenue and data center build outs,” said Alan Weckel, founding analyst for 650 Group, in a statement. “Hyperscalers buy a different class of equipment from a different set of suppliers from the rest of the market and third quarter results are showing those differences in vendor market shares.”
FREE DAILY NEWSLETTER
Like this story? Subscribe to FierceTelecom!
The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.
Weckel said the Tier 2 Cloud providers continued to lack scale, and are relying on hyperscalers instead of building out their own infrastructure.
“The significant slowdown in Tier 2 cloud spending, with many Tier 2 Clouds relying more on hyperscalers, has changed the supply chain and how it is working beneath the hyperscalers,” according to Weckel.
RELATED: Data center capex for U.S. hyperscalers drops year over year: report
Other report highlights included:
• Amazon Web Services is three times bigger than any other infrastructure-as-a-service (IaaS) competitor.
• Facebook capex guidance for 2019 is now $4 billion less than a year ago, but its 2020 projections are up year-over-year.
• 400 Gbps deployments continue to get pushed out, with hyperscalers looking toward high-density 100 Gbps and/or 200 Gbps as interim solutions.
• Supply chain supporting each hyperscalers continues to be significantly different and diverse.
• Amazon and Microsoft continue to outgrow Facebook and Google.
• The trade war with China is causing more fluctuations in the supply chain than hyperscaler demand.
650 Group’s cloud reports includes capex studies for the colocation, IaaS, software-as-a-service (SaaS), and search and social media markets including spending specifically for data center equipment.
Sorry, the comment form is closed at this time.