Specialized Software on Commodity Servers to Cannibalize Other Markets, According to Dell'Oro Group

Software-Defined Systems to Propel Server Market, Inhibit Storage Market

Feb 08, 2016, 08:00 ET from Dell'Oro Group

REDWOOD CITY, Calif., Feb. 8, 2016 /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, specialized software on commodity servers will cannibalize other markets, such as storage arrays and network appliances.

"Despite downward pressure from server virtualization and emerging containerization trends, which further boost the utilization of each physical server, we project positive server shipment growth over the next five years," said Sameh Boujelbene, Director at Dell'Oro Group. "The growth in server shipments will be fueled by a number of factors, such as software-defined systems. Our research shows that Cloud data center operators, like Amazon, Facebook, Google, and Microsoft, are building their own storage systems using specialized software on commodity servers in lieu of purchasing storage arrays. The degree to which other specialized equipment will be cannibalized, and the degree to which enterprise users will adopt software-defined systems, will depend on software development. We are seeing significant vendor activity in specialized software development, but one clear trend is that it is boosting server shipments," Boujelbene added.

The report also discusses server network connectivity and the plethora of Ethernet speeds available now and in the near future.  It addresses the viability of the different speeds and the prospects of the market supporting such variety.

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, please contact Matt Dear at +1.650.622.9400 x223 or email Matt@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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