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Tag: John Dinsdale

  • Virginia Is the Data Center Capital of the World

    Virginia Is the Data Center Capital of the World

    Silicon Valley may be the tech center of the world, but Virginia is the undisputed data center capital, with more capacity than China or Europe.

    According to Synergy Research Group, the US has the majority of the world’s data centers, coming in at 53%. Impressively, Virginia alone accounts for more than one-third of the country’s capacity and surpasses both China and Europe.

    “In Europe, the Netherlands and Ireland have always punched far above their weight, beating out countries with larger economies like Germany and the UK,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “But globally, the standout region is the US state of Virginia. Virginia has far more hyperscale data center capacity than either China or the whole continent of Europe. However, our analysis of the future data center pipeline shows that the relative importance of these hot spots will tail off a little over the next five years, as hyperscale infrastructure permeates a broader geographic footprint.”

  • AWS, Microsoft, and Google Account for More Than Two-Thirds of the Cloud Market

    AWS, Microsoft, and Google Account for More Than Two-Thirds of the Cloud Market

    According to new research, the top three cloud providers are extending their lead in the market, accounting for 65% of total cloud spending.

    AWS is currently the market leader, although Microsoft Azure has been making significant gains, and Google Cloud has been establishing itself as a multi-cloud provider. While the overall market continues to grow at a whopping 34%, these three providers account for 71% of the cloud market share, according to Synergy Research Group.

    As the cloud market has grown, the top three providers’ share of cloud market spending has grown as well. In the first quarter of 2022, global cloud spending was $52.7 billion, with the top three raking in 65% of that. In contrast, several years ago, the top three accounted for 52% of global cloud spending, demonstrating their growing dominance in the market.

    According to Synergy, smaller companies will need to differentiate themselves by targeting niche markets in order to remain competitive.

    “While the level of competition remains high, the huge and rapidly growing cloud market continues to coalesce around Amazon, Microsoft and Google,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “Aside from the Chinese market, which remains totally dominated by local Chinese companies, other cloud providers simply cannot match the scale and geographic reach of the big three market leaders. As Amazon, Microsoft and Google continue to grow at 35-50% per year, other non-Chinese cloud providers are typically growing in the 10-20% range. That can still be an attractive proposition for those smaller providers, as long as they focus on regional or service niches where they can differentiate themselves from the big three.”

  • Cloud Infrastructure Spending Hit $42 Billion in Q2

    Cloud Infrastructure Spending Hit $42 Billion in Q2

    The cloud infrastructure market continued its impressive gains, with spending hitting $42 billion in Q2, according to Synergy Research Group.

    Synergy’s latest data is good news for the industry, and provides a number of important revelations. According to the company, the top three cloud companies continue to be AWS, Microsoft and Google, with 33%, 20% and 10% of the market respectively. Alibaba, IBM, Salesforce, Tencent, Oracle and “Others” round out the industry.

    Interestingly, that means the top three companies account for 63% of money spent on cloud infrastructure.

    “This market continues to be a runaway success story for Amazon, Microsoft, Google and some other cloud providers. You would not normally expect to see growth rates actually increasing in such a huge and rapidly developing market, yet once again that is what our research has shown,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “It must be said that this success is hard earned. Amazon, Microsoft and Google in aggregate are typically investing over $25 billion in capex per quarter, much of which is going towards building and equipping their fleet of over 340 hyperscale data centers. There remains a wealth of opportunity for smaller, more focused cloud providers, but it can be hard to look away from the eye-popping numbers coming out of the big three.”

    Synergy’s report is further evidence that, despite the accelerated cloud transition as a result of the pandemic, there appears to be plenty of room for further growth.