The report provides detailed server unit statistics, as well as connector
market statistics and background information by server business segment.
Server business segments covered in this report include:
- Enterprise/World Corporate Cloud Servers
- Midrange Servers
- Rack-Blade Servers
- Open System Servers
The approximately $50B+ server market has had a nominal 5-7.5% AGR with higher
growth cycles in up years. Major business-to-business segments of the industry
are sensitive to economic cycles. 2011 was an up year after the 2008-2009
recession and recovery in 2010. The market was led in revenues by IBM (33.7%),
followed by HP (26.9%), Dell (14.6%), Oracle-Sun (5.3%), Fujitsu (3.6%) and
all others (15.8%).
The server market is dominated by North America suppliers: IBM, HP, Dell,
Oracle/Sun, but there are aggressive/innovative smaller firms, including
several in Taiwan and China, plus a trend toward large end users like Google,
assembling their own. This, combined with a trend toward cloud computing,
server virtualization, and low power micro-server systems, is changing the
Major suppliers both outsource and have their own factories in North America,
Europe and Asia. The dynamics of competition are as follows:
- Intel remains strong due to CPUs, chip sets, motherboards and overall
influence on X86 server designs.
- 75% of Intel's Chips used to go to IBM, HP and Dell. In 2012 at least 8
firms buy 75% of Intel's server chips. However, Intel faces a major challenge
from low power, Linux and ARM-based server systems.
- Microsoft also remains a strong influence with Windows NT and Server 2012
- The Intel-Microsoft Duopoly in PCs has relentlessly shifted the Server
market toward Wintel designs.
- HP has had on-going corporate controversy and has the potential for
downsizing or reorganization.
- Dell has focused on servers to shore up profitability and is solidly #3 in
- IBM remains the industry leader in dollars and profitability - but may be
exposed to lower cost solutions.
- Sun is under Oracle ownership and has a strong, if not eroded following in
the IT industry.
- Lenovo is emerging as a force in China, and will become an increasing
factor in that fast-rising market.
- Startups and venture firms continue to make the server market space
- Micro-server technology, virtualization, open-source and cloud computing
will impact the server market.
- Virtualization can cannibalize 10-1 server hardware where it is deployed
and is a serious emerging factor.
- Cloud computing is a major sift, with some companies tooling remote
server/storage 'in the cloud'.
- Solid state disk use is increasing due to high reliability, low power and
fast access times.
- SSDs will compliment, not replace HDDs in server/storage markets.