Date: Tuesday, June 25, 2013

CLOUD INFRASTRUCTURE EQUIPMENT Q1 2013 WORLDWIDE

MARKET SHARE ANALYSIS

MARKET SHARE REPORT Directions: To view detailed charts or tables of each category log into your SIA account at www.srgresearch.com. To view this document in Excel or PDF click Latest Reports, where they have been placed. 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 Group’s 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 provider’s firewall, which supports Cloud services to subscribers over the Internet. A Private Cloud is a data center that resides behind a company’s firewall providing cloud services, where services and IT resources are only accessible to the users of that particular organization’s 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:

Cisco,  15.4%  

IBM,  14.5%  

HP,  14.2%  

Dell,  8.9%  

EMC,  6.9%  

Others,  40.1%  

Total  Cloud  Infrastructure  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

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Total  Cloud  Infrastructure  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

Cisco   IBM   HP   Dell   EMC  

    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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Total  Cloud  Networking  Infrastructure  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

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

Cisco,  52.1%  

Brocade/Foundry,  9.4%  

Juniper,  8.1%  

F5,  4.7%  

QLogic,  2.5%  Others,  23.2%  

Total  Cloud  Networking  Infrastructure  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

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Total  Cloud  Networking  Infrastructure  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

Cisco   Brocade/Foundry   Juniper   F5   QLogic  

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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Total  Cloud  CompuCng  Systems        Revenue  Amount  

Quarterly  Company  Market  Share  Report  (Worldwide)  

HP,  25.0%  

IBM,  21.8%  

Dell,  16.3%  VMware,  9.7%  

Oracle,  5.3%  Other,  21.9%  

Total  Cloud  CompuCng  Systems        Revenue  Amount  

Quarterly  Company  Market  Share  Report  (Worldwide)  

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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HP   IBM   Dell   VMware   Oracle  

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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

EMC,  28.4%  

IBM,  18.7%  NetApp,  14.5%  

Hitachi,  10.1%  

HP,  8.9%  

Others,  19.4%  

Total  Cloud  Storage  Systems  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

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Total  Cloud  Storage  Systems  Revenue  Amount  Quarterly  Company  Market  Share  Report  (WW)  

EMC   IBM   NetApp   Hitachi   HP  

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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 information contained in this report.