Why the cloud is bad news for Cisco, Dell, and HP

In the cloud business, every server vendor is a loser.

Synergy Research Group recently released its rankings of the top vendors in cloud infrastructure, with Cisco, HP Enterprise, and Dell EMC claiming the top three spots for public cloud hardware. That’s the good news.

The bad news is that every server vendor but HPE saw revenue declines over last year as big datacenters increasingly skip name-brand servers for no-name boxes from original design manufacturers (ODMs), as IDC data reflects. Even HPE’s server revenue barely eked out 3.5 percent growth. In other words, every big-brand server vendor is essentially a loser in the cloud.

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