Virtualization And Cloud Server Market Pull

The server market is ripe and concentrated in traditional brands in the industry. Gartner estimates that the segment will continue growing and offering business opportunities for industry. Biggest Data center Service Providers and small and medium enterprises (SMEs) are among the main buyers, but providers have challenges to overcome.

"The server market has sold 52.8 million units worldwide and although it is mature, will provide significant opportunities for growth in the coming years," says Gartner analyst. The demand for more powerful processing capability, and virtualization solutions for energy efficiency are some of the factors that will generate new business for this industry.

Gartner analyst says that although the instant dedicated servers market is currently very competitive, offers a small margin of profit. The prevalence of standard platforms (x86) also makes life more difficult time for suppliers to differentiate their products.

To change this situation, companies have made significant efforts to equip creating lines converged infrastructure based on integrated systems. However, the server manufacturers are challenged to innovate and respond quickly to customer demands.

Three growth factors

Gartner highlights three engines that will pull this market. The first is the demand for data centers escalating machines. Companies like Google, Amazon, Facebook have large data centers to serve its external customers and need a large number of Hyperscale servers.

The demand for such machines now account for 11% of server sales, according to Gartner. Projections are that the consulting this index will rise to 17% in 2015.

The second factor that will drive this is the increasing virtualization of servers. Gartner estimates that virtualized physical servers in three years represent 17% of industry sales. The advisory indicates that such equipment will be sought especially by public companies. Small and medium enterprises (SMEs) should also invest in this cloud hosting technology, stimulating this market.

The concern of data centers by deploying technologies that improve efficiency and energy expenditure is the third driver of this market.

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Source: Virtualization And Cloud Server Market Pull