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Server Market on Track to Surge $10 Billion Higher in 2018 Before Growth Rates Taper, According to Dell'Oro Group

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Server Market on Track to Surge $10 Billion Higher in 2018 Before Growth Rates Taper, According to Dell'Oro Group

Vendor Landscape Trending to Lower-Cost White Box Cloud Servers

PR Newswire

REDWOOD CITY, Calif., Aug. 30, 2018 /PRNewswire/ --According to a recently published report by Dell'Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, the server market is on track to surge $10 Billion higher in 2018 before growth rates taper.  Vendor landscape is trending to lower-cost white box cloud servers.

Dell'Oro Group Logo. (PRNewsFoto/Dell'Oro Group)

"Although we forecast a five-year compounded annual growth rate of only two percent, the growth of the server market in 2018 will be at an unprecedented level," said Baron Fung, Senior Business Analysis Manager at Dell'Oro Group. "However, the cloud segment, which consists of a high proportion of lower-cost custom designed servers, will continue to gain unit share over the enterprise, putting long-term revenue growth under pressure.  Furthermore, the vendor landscape will continue to shift from OEM to white box servers as the market is shifting towards the cloud," added Fung.

Additional highlights from the Server 5-Year Forecast Report:

  • The 2018 growth is primarily attributed to rising average selling prices, resulting from vendors passing on higher commodity prices and end-users purchasing higher-end server configurations.
  • We estimate half of all servers shipping this year go to the cloud, and foresee this share growing to two-thirds by 2022.

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 this report, contact Daisy Kwok at +1.650.622.9400 x227 or email Daisy@DellOro.com.

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

 

 

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SOURCE Dell'Oro Group

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