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Showing posts with the label workloads

AI and Cloud Spending Ignite Server Growth

The global IT server market is undergoing a transformation, fueled by the insatiable demand for cloud computing and artificial intelligence (AI) infrastructure. As organizations across industries race to harness the power of advanced AI models, the underlying hardware ecosystem is experiencing unprecedented growth and innovation. The latest worldwide IDC market study offers a compelling view, revealing record-breaking numbers and the strategic technology shifts shaping the future of enterprise computing. Cloud Server Market Development The most striking statistic from IDC’s 2025 analysis is the sheer scale and velocity of market expansion. The worldwide server market is projected to reach $366 billion in 2025, representing a 44.6 percent increase over 2024. This surge is not a one-off anomaly; it is the culmination of several quarters of explosive growth, with the first quarter of 2025 alone recording $95.2 billion in server sales --that's up 134.1 percent year-over-year (YoY). Key...

Agentic AI Propels Global AI Server Demand

The artificial intelligence (AI) server market stands at a crossroads, propelled by the dual engines of agentic AI and inferencing, even as it encounters the headwinds of global tariff pressures. As more organizations across industries race to harness AI's transformative power, the infrastructure underpinning these capabilities has become a focal point for investment, innovation, and strategic maneuvering. Recent findings from ABI Research underscore just how dynamic and lucrative this sector has become, forecasting robust growth and highlighting the technological and geopolitical forces at play. Agentic AI and Inferencing Market Development Agentic AI refers to AI systems capable of making independent decisions and taking actions to achieve specific goals, often with minimal human intervention. Inferencing is the process by which trained AI models generate predictions or decisions from new data inputs. Together, these advancements are driving a surge in demand for specialized serv...

Data Center Energy Demand Fueled by AI Growth

The global digital business arena's relentless expansion drives an unprecedented surge in IT data center demand. This comes with a significant challenge: rising energy consumption costs.  Based on the latest research, I've observed how this trend is reshaping the cloud computing industry and creating both obstacles and opportunities for leaders across the tech spectrum. Data centers are experiencing an infrastructure transformation, primarily fueled by the explosive growth of Artificial Intelligence (AI) workloads. Data Center Energy Market Development According to a recent IDC worldwide market study, AI data center capacity is projected to grow at a compound annual growth rate (CAGR) of 40.5 percent through 2027. This AI-driven demand is reshaping the data center sector and redefining the economics of IT infrastructure. "There are any number of options to increase data center efficiency, ranging from technological solutions like improved chip efficiency and liquid cooling...

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c...

IoT Data Security Solutions Demand Gains Momentum

Internet of Things (IoT) technology deployments have increased across the globe, as more CIOs and CTOs explore new commercial applications. However, many organizations continue to seek IoT solutions that include comprehensive data protection capabilities. Security continues to be a major concern for IT professionals when deploying IoT projects within their organizations, according to the latest worldwide market study by 451 Research. When asked to rank which technologies or processes their organizations considered for current or planned IoT initiatives, 55 percent of respondents ranked IoT security as their top priority. IoT Security Market Development As 451 Research data consistently shows, security is a headwind that must be overcome. Survey respondents have consistently rated IoT security as their highest priority – but why? "The nature of IoT deployments make them particularly difficult to secure against cyber threats," said Brian Partridge, vice president at 4...

Converged Systems Market will Reach $21B by 2019

The public cloud service adoption trend has driven many changes at traditional IT organizations. In particular, savvy CIOs have introduced new converged system technology into their enterprise data centers, to improve automation and increase their agility. As a result, converged systems are now established as a platform of choice for enterprise mission-critical workloads. According to the latest worldwide market study by Technology Business Research (TBR), converged systems continue to displace traditional, stand-alone infrastructure, establishing the market as critical to the future longevity of data center hardware OEMs. "The evolution of converged systems represents a landmark in the history of data center infrastructure," said Christian Perry, principal analyst and practice manager at TBR . According to the TBR assessment, informed business technology decision-makers are overcoming internal resistance to IT change. They're deploying these converged systems rap...

The Overall Computer Server Market Continues to Decline

Virtualization and the shift to cloud computing continue to refocus market demand. Revenue in the worldwide server market decreased -2.2 percent year over year to $10.9 billion in the first quarter of 2014 (1Q14), according to the latest market study by International Data Corporation (IDC). This is the fifth consecutive quarter that the server market has experienced a year-over-year decline in worldwide revenue. Server unit shipments improved 2.1 percent year over year in 1Q14 to 2.1 million units as investments in hyperscale datacenter capacity were largely offset by consolidation, which continued to be a strategic focus for many large and small customers around the globe. On a year-over-year basis, volume systems experienced 3.9 percent revenue growth. This was the fourth consecutive quarter that volume system demand increased year over year.  At the same time, demand for midrange and high-end systems experienced year-over-year revenue declines of -4.8 percent and -25.6 pe...