The Decade’s Megatrends in Numbers – Part 5:

IT Vendors that Grew Their Enterprise Sector Revenues by over $10 billion in the Decade

RENO, NV, January 10, 2020

Synergy Research Group’s detailed review of enterprise IT markets over the last ten years has identified eight vendors who collectively grew their annual enterprise IT revenues by over $200 billion during the decade. Six of them each increased their annual enterprise sector revenues by well over $10 billion from 2009 to 2019, with Microsoft achieving by far the biggest growth at almost $50 billion. It was followed by Amazon, Huawei, Dell, Cisco and Salesforce. Google and Adobe didn’t hit the $10 billion mark but they also achieved significant growth in the enterprise sector. This does not reflect a ranking of the largest enterprise IT vendors but rather those that moved the needle the most in growing the market over the ten-year period. One other notable growth story of the decade was the emergence of ODMs manufacturing massive amounts of hardware on behalf of hyperscale operators. In aggregate ODMs are now generating some $17 billion from these activities, up from virtually zero ten years ago. In aggregate, these eight technology vendors plus ODMS tripled their annual enterprise sector revenues over the decade, reaching $320 billion. While most of them acquired companies during the period, the great majority of the revenue increase came from organic growth - the one big exception being Dell whose 2016 acquisition of both EMC and VMware more than doubled its revenues in the enterprise sector. The main market segments that supported the growth of these companies were cloud infrastructure services and software (SaaS in particular), and, to a lesser extent, UC collaboration, Ethernet switching and servers. Note that for this exercise enterprise is defined as including sales to service providers, but excluding consumer-oriented activities and also excluding sales of mobile phones, PCs, tablets and other devices.

“In many ways the 2019 enterprise IT market is almost unrecognizable from the one of 2009. Ten years ago Amazon and Google had hardly any presence in the enterprise sector and Salesforce was still in its early days. In 2019 those three collectively generated over $60 billion in revenues from enterprises,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “In 2009 Microsoft was already one of the biggest sellers of enterprise technology, but over ten years it has grown those revenues by almost 150% to become by far the biggest player in the sector. Huawei has grown dramatically thanks to its booming local market and targeting of new regions and product segments, while Dell has absorbed some big name vendors and Cisco has steadily increased its networking and collaboration business lines. We now enter the new decade with a revamped list of major tech companies serving enterprise customers.”