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Intersect360 Research Releases 2019 Hyperscale Market Overview and Analysis

Total Worldwide Hyperscale IT Spending Crested $57 Billion in 2018

SUNNYVALE, CA—October 25, 2019—Leading HPC and hyperscale analyst firm Intersect360 Research has released its total market model and future outlook for the overall Hyperscale market, announcing that the total worldwide Hyperscale market amounted to $57 billion in IT spending in 2018. This represented 30% growth in the market over 2017.

According to the report, eleven companies in this space – defined by Intersect360 Research as the Tier 1 vendors – each spent over $1 billion on IT for Hyperscale infrastructure in 2018, with the top three companies each spending more than $5 billion.

“The Hyperscale market is important because of the extreme influence it has over the rest of IT,” said Addison Snell, CEO of Intersect360 Research. “Hyperscale influences product development, shapes the workforce, and fuels major trends like AI.”

Snell adds, “Not only has Hyperscale continued to grow, but it also has continued to concentrate into the Tier 1 vendors. The market power is so concentrated it affects major human issues on an international scale.”

Investment at the top end of the Hyperscale market is staggering, with the top eleven vendors accounting for 82% of spending in 2018.

Although Intersect360 Research believes that the Hyperscale market has completed most of its initial expansion phase and will heretofore be predominantly driven by consolidation, the analyst firm predicts that growth will continue, driving the Hyperscale market to cross the $100 billion mark within five years.

Intersect360 Research defines the Hyperscale market as those organizations with core business processes that are based on accessing, processing, and disseminating information through the internet, a market that is separate and distinct from traditional HPC.

Snell explains, “The size and growth of the Hyperscale market are bounded only by the number of customers and partners Hyperscale companies can interact with the over the internet, whether by web, cloud, or mobile app. This business model generates unique requirements for IT infrastructures.”

For this set of businesses, revenue is linked to scale. As a result, computing, storage, and network requirements tend to cluster at the high end of the scalability spectrum, often at the extreme high end.

AlthoughHyperscaleimplies very large infrastructure, these web-based core processes exist across a broad range of organization sizes, generating a corresponding range of requirements for information technology products and services. Primary workloads associated with Hyperscale include: Web search, online retail, content hosting and distribution, social media, communication services, cloud application services, pattern recognition, massively multiplayer online games, machine learning, artificial intelligence, and cognitive computing.

In addition to its Hyperscale market reports, the latest data on the HPC market and AI/Machine Learning is available from Intersect360 Research in a series of reports covering the following segmentations:

  • High Performance Computing (HPC) Revenue: Worldwide Market and Forecast Series
  • HPC User Site Census Survey Series - HPC user community, tracking installation and technology trends
  • HPC User Budget Map Survey Series - HPC user community, tracking spending and budget trends
  • HPC Vendor Profile Series - Market data, survey results, analyst opinion, and SWOT analysis for leading HPC vendors 
  • AI / Machine Learning Training Infrastructure Revenue: Worldwide Market

For a full list of published reports, visit www.intersect360.com/2019-research. Reports can be purchased individually on the website, or as a discounted package through the Intersect360 Research sales team. Inquire with sales@intersect360.com for discounts and special pricing.

About Intersect360 Research

Intersect360 Research is a market intelligence, research, and consulting advisory practice focused on high-performance data center trends, including High Performance Computing (HPC), artificial intelligence (AI) and machine learning, cloud computing, big data, and hyperscale. Intersect360 Research utilizes both user-based and supplier-based research to form a complete perspective of market dynamics, trends, and usage models, including both technical and business applications. The company's end-user-focused research is inclusive from both a technology perspective and a usage standpoint, allowing Intersect360 Research to provide its clients with total market models that include both traditional and emerging HPC applications.

In addition to its market advisory subscription services, Intersect360 Research offers customers an array of client-specific services, including custom surveys, white papers, custom analysis, and both marketing and general business consulting.

 

More information on Intersect360 Research can be found at: www.intersect360.com.