Cloud and Hyper-Scale Servers to Grow to 50% of Total Server Volume

Dell’Oro Group projects server unit shipments will continue to grow, albeit at a low single digit CAGR for the 2014-2019 period. The report states that almost 50% of deployment of servers will be used in data centers providing cloud services. This will drive further commoditization of servers, however for companies like Supermicro, Quanta, Synnex Hive etc, this is great news. The same can be said for Dell’s DCS and HP’s Moonshot initiative.

“The increase in the number of connected devices as well as the number of workloads processed by data centers will continue to drive demand for physical servers, although virtualization trends will dampen growth rates,” said Sameh Boujelbene, Director at Dell’Oro Group.  “Although server shipments will continue to grow, the deployment location for these servers is definitely changing. Cloud economics—including server prices, resiliency, scalability, and product lifespan—along with enhancements in cloud security are promoting migration of workloads across servers, and are accelerating Cloud adoption,” stated Boujelbene.

The Report indicates that high-density servers, based on either Intel’s X86 or ARM processors will drive the majority of growth in unit shipments during the forecast period. The analysis also discusses the various Ethernet network connectivity options for each server form factor for Cloud vs. Enterprise/Premises deployments, and reveals that a minimum of eight port speeds are expected to co-exist for server access over the next five years.

About the Report

The Dell’Oro Group Server 5-Year Forecast Report offers complete in-depth coverage of the server market with tables covering manufacturers’ revenue, average selling prices, and unit shipments for Blade, High-Density and Stand-Alone servers. We also include shipments to Cloud vs. Enterprise/Premises by server form factors and provide Ethernet network attach rates (1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps and 100 Gbps) for each server category.  To purchase these reports, please contact Julie Learmond-Criqui at +1.650.622.9400 x244 or email julie@DellOro.com.

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