Skip to main content

Data Centers Use More x86-Based Hyperscale Servers

Data center technology continues to evolve, as revenue in the worldwide server market increased by 6.1 percent year-over-year to $13.5 billion in the second quarter of 2015 (2Q15), according to findings from the latest market study by International Data Corporation (IDC).

This quarter revenue grew in rack-optimized, blade, and density-optimized server form factors, while towers declined slightly. Global server shipments totaled 2.29 million units in 2Q15 -- that's an increase of 3.2 percent when compared with the second quarter of 2014.

On a year-over-year basis, volume system revenue increased 8.1 percent and high-end server system demand increased 4.0 percent in 2Q15 to $10.1 billion and $2.3 billion, respectively.

The volume segment was aided by a continued expansion of x86-based hyperscale server infrastructures coupled with enterprise and SMB refresh of x86-based platforms, while high-end systems were helped by IBM's z13 refresh.

Meanwhile, demand for mid-range systems in 2Q15 contracted by -5.4 percent year over year to $1.1 billion, as the x86 refresh appears to have run its course in this segment.

"The recent growth trend in the server market is confirmation of the larger IT investment taking place, despite dramatic change occurring in system software thanks to open source projects such as Docker and OpenStack," said Al Gillen, vice president at IDC.


Overall Server Market Vendor Results

HP captured worldwide market share of 25.4 percent in 2Q15 on 7.7 percent year-over-year revenue growth to $3.4 billion. HP's revenue growth was driven primarily by strong demand for its density-optimized servers, which grew 118.7 percent year over year, and its rack-optimized servers, which grew at a more modest 10.5 percent year over year but still managed to contribute a larger portion to HP's overall revenue growth.

Dell showed year-over-year growth of 5.9 percent and its nearly $2.4 billion of revenue placed the company in the number 2 position with 17.5 percent market share this quarter. Dell benefited from revenue growth in its blade and rack-optimized products. Dell's blade server revenue grew faster than that of any of the top 5 vendors at 38.7 percent, discounting Lenovo's acquisition of IBM's x86 server business.

IBM retained its number 3 position following its x86 divestiture with $2.0 billion in revenue and 14.8 percent market share. IBM's revenues are now associated with its POWER and System Z product lines.

Lenovo and Cisco finished the quarter in a statistical tie for the number 4 position. Lenovo captured 7.0 percent worldwide market share with $949 million in 2Q15 revenues.

Cisco was close behind with $867 million in revenue and 6.4 percent revenue market share. Cisco's year-over-year growth of 19.3 percent was considerably above average for the industry and suggests the company is not done capturing incremental market share in the server market. Cisco's blade business also continued to grow well, with Cisco's blade revenue second only to HP in 2Q15.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of