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Cloud datacentres are expected to account for half of server shipments by 2018

Cloud datacentres are expected to account for half of server shipments by 2018

Although server shipments are expected to grow in the single digit percentages annually, cloud datacentres are expected to account for nearly half of all server shipments by 2018 according to a recently published report.

A five-year forecast on the server market produced by the Dell’Oro Group shows that high-density servers based on Intel’s x86 or ARM architectures will drive the majority of growth in unit shipments during the forecast period, as opposed to converged infrastructure or servers based on higher-end niche architectures like SPARC and Power.

Overall, growth rates in the server market have slowed over the past few years, in part due to increased virtualisation as well as datacentre consolidation.

“The increase in the number of connected devices as well as the number of workloads processed by datacentres will continue to drive demand for physical servers, although virtualisation trends will dampen growth rates,” said Sameh Boujelbene, director at Dell’Oro Group.

“Although server shipments will continue to grow, the deployment location for these servers is definitely changing. Cloud economics—including server prices, resiliency, scalability, and product lifespan—along with enhancements in cloud security are promoting migration of workloads across servers, and are accelerating cloud adoption,” Boujelbene said.

In part because of widespread cloud adoption and deployment among enterprises and service providers, the firm also said the networking capabilities built into these servers will play an important role in deciding which server incumbent ends up with the lion’s share of the market.