650 Group reports US hyperscaler data center CAPEX grew 10% year-over-year in Q3 2019.

According to a newly released report from 650 Group's founding analysts, the US Hyperscaler Cloud market demonstrated strong momentum in the third quarter of 2019, with revenue growing 26% year-over-year while capital expenditures for data center equipment expanded at mid-teen year-over-year rates. The 650 Group's Cloud Report encompasses Colocation, IaaS, SaaS, and Search & Social markets.

"3Q19 Hyperscaler results were robust with strong growth in revenue and data center build outs," said Alan Weckel, founding analyst for 650 Group. He noted that hyperscalers purchase a distinct class of equipment from a different supplier base than the broader market, with 3Q19 results reflecting these differences in vendor market shares. A significant slowdown in Tier 2 Cloud spending has also emerged, as many Tier 2 Cloud providers increasingly rely on hyperscalers, fundamentally reshaping the supply chain and operational dynamics beneath hyperscale infrastructure.

The report provides comprehensive CAPEX studies across Colocation, IaaS, SaaS, and Search and Social Media markets, offering a unique examination of spending specifically dedicated to data center equipment. This deeper analysis reveals critical trends in how the largest cloud providers deploy infrastructure. The data shows a pronounced shift toward increased CAPEX spending in IaaS, driven by SaaS providers choosing to utilize IaaS platforms rather than constructing and maintaining their own proprietary infrastructure.

For additional information about the report, 650 Group can be reached at +1 650 600 7104, val@650group.com, or www.650group.com.