Capex of webscale network operators grew 9 percent to $114.4 billion in the second quarter of 2020, according to MTN Consulting report.

The network/IT portion of Capex of webscale network operators amounts to 49.7 percent of the total.

Capex is highly concentrated in the webscale sector. The top 4 WNOs – Alphabet, Amazon, Google, and Facebook – accounted for 68 percent of the market for the four quarters ended 2Q20. That’s up from 63 percent of total capex in the 2Q19 annualized period.

Webscale partnerships with telecoms have expanded, spanning workload shift, joint development, and service partnerships – often supporting 5G.

In January, MTN Consulting flagged the need for more collaboration between telcos, WNOs, and carrier-neutral providers as essential for 5G success. This trend tends to support telcos’ aim to lower their capex outlays, and explains a small part of the ongoing growth in webscale network spending.

Synergy Research Group said spending on data center hardware and software increased by 7 percent from the second quarter of 2019, thanks to a 25 percent jump in spending on public cloud infrastructure.

The Q2 market leader in enterprise infrastructure was Microsoft, followed by Dell, HPE, Cisco and VMware.