The Global Market for Low-End Servers is Projected to Reach 12 Million Units by 2020
Growing SMB Enterprise Sector Drives Growth in the
Low-End Servers Market, According to a New Report by Global Industry Analysts, Inc.
GIA announces
the release of a comprehensive global report on Low-End Servers. The
global market for Low-End Servers is projected to reach 12 million units by
2020, driven by the growing business activity in the small and medium sized
business (SMB) enterprise sector, and rising demand for low-cost and
energy-efficient servers in Asia-Pacific and Latin America.
Low-end servers,
supported by their proven attributes of low-price, superior processing and
security features, have emerged as a sturdy value proposition for enterprises
seeking cost effective and better performing technology solutions. Small and medium sized businesses and home offices
have long been the primary target for low-end servers, as high-end
servers fail to fulfill the requirements of these businesses given their high
cost and inability to effectively process low workloads of data. While the
primary addressable market segments for low-end servers remain the small and
medium sized business (SMBs), data centers, and home offices, use of these
servers is gaining immense popularity in corporate branches, independent
departments and workgroups of large enterprises. In addition, low-end servers
span is expanding into in-house server based applications of large enterprises such
as business software and e-mail systems. Simultaneously, low-end x86 servers are
finding their use as replacements for high-priced high-end servers in
cluster/grid based format, which is further enhancing the overall demand for
low-end servers.
Enterprise data
centers are now more than ever being strained to process gigantic amounts of
information, thanks to the growing usage of a range of sophisticated mobile
devices and the need to access information even on the move. While high costs,
particularly CAPEX on high-end servers has been one of the major issues
plaguing these data centers, scalability, increased energy consumption and the
need for large space owing to the form factor of the servers and the
requirement of powering and cooling them are the other factors that have been
challenging IT managers in various facilities. Virtualization and cloud
computing have significantly helped transform the data center environment by
bringing about significant efficiencies at the macro level thereby enabling the
facility to become more robust. However, there still exists the need for
gaining efficiencies at the hardware level, which requires systems that help
address major issues that these facilities have been predominantly facing. In
this context, with their low price points and relatively reduced energy
consumption attributes, low-end servers are making strong progress in the data
center market.
As stated by
the new market research report on Low-End Servers, Asia-Pacific represents the largest as well as the fastest growing
market worldwide with a projected CAGR of 7.9% over the analysis period.
Growth in the region is led by countries such as China and India. The rapid
proliferation of SMBs in developing regions like Asia-Pacific, Middle East, and
Latin America bodes well for the market. Mushrooming of SMBs is largely the
result of higher GDP growth, higher liquidity, and greater net incomes in these
regions. In Europe, subdued growth in IT spending, especially in Western
Europe, is casting a dampener on demand patterns in the domestic market.
Key players
covered in the report include Acer America Corporation, Advanced Micro Devices
Inc., Cisco Systems Inc., Dell Inc., Fujitsu Limited, Hewlett-Packard Company,
Hitachi Data Systems, Intel Corporation, Lenovo, Microsoft Corporation, NCR
Corporation, Oracle Corporation and Sugon.
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