Skip to main content

Hyperscale Data Centers will Drive Open Server Demand

Worldwide computer server shipments increased 2.8 percent to 2.5 million units in 4Q14 when compared with the same year-ago period, according to the latest market study by International Data Corporation (IDC). Growth was due to an ongoing enterprise data center refresh cycle, coupled with infrastructure investments by public cloud computing service providers.

For the full year 2014, worldwide server revenue increased 2.3 percent to $50.9 billion when compared to 2013, while worldwide unit shipments increased 2.9 percent to 9.2 million units, a record high.

On a year-over-year basis, volume system revenue increased 4.9 percent and mid-range system demand increased 21.2 percent in 4Q14 to $10.8 billion and $1.4 billion, respectively.

The volume segment was aided by a continued expansion of x86-based hyperscale open server infrastructures while mid-range systems were helped by enterprise investment in scalable systems for virtualization and consolidation.

"Public cloud service providers continue their hyperscale deployment march as both large and mid-sized service providers expand their data center footprints to meet growing cloud computing services demand, led by cloud hosting services," said Kuba Stolarski, research manager at IDC.

Open server demand will continue in hyperscale data centers. Moreover, as demand for the Internet of Things grows -- generating big data applications, increased network traffic, and use-cases for real-time analytics -- new methods of deploying open-source compute and storage capability will continue the scale-out transformation.


Additional Server Market Study Findings Include:

  • Regionally, Asia-Pacific experienced the sharpest revenue growth with a year-over-year increase of 15.8 percent in 4Q14. Europe, Middle East and Africa (EMEA), Japan, and the United States also experienced positive year-over-year growth of 1.2, 1.5, and 1.0 percent, respectively.
  • China once again exhibited significant growth with year-over-year revenue up 26.2 percent to $2.0 billion. The top 4 Chinese OEMs – Inspur, Huawei, Lenovo, and Sugon – all grew revenue by more than 50 percent on a year-over-year basis as the China market crossed the $2 billion quarterly revenue threshold for the first time.
  • Demand for x86 servers improved in 4Q14 with revenues increasing 7.1 percent year over year in the quarter to $11.5 billion worldwide as unit shipments increased 2.9 percent to 2.5 million servers.
  • HP led the market with 31.3 percent revenue share based on 4.6 percent revenue growth over 4Q13. Dell retained second place, securing 21.1 percent revenue share following 11.9 percent year over year revenue growth.
  • Non-x86 servers experienced a revenue decline of -14.0 percent year over year to $3.0 billion, representing 20.7 percent of quarterly server revenue. This was the fourteenth consecutive quarter of revenue decline in the non-x86 server segment.
  • IBM leads the segment with 66.1 percent revenue share following a year-over-year revenue decrease of -19.2 percent when compared with the fourth quarter of 2013.
  •  IDC also began to see early stage revenue from ARM server sales in 4Q14 largely the result of HP Moonshot system deployments.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C