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EMEA Server Shipments Market Increased 0.8

intel-Hyperscale Architecture

0.8 Per Cent rise in the Second Quarter of 2014 and Revenue Grew 3.8 Per Cent means that Server Shipments Market Increased in EMEA

In Europe, the Middle East and Africa (EMEA), server shipments in the second quarter of 2014 grew for the first time in 11 quarters, by 0.8 per cent, according to Gartner. Server revenue also grew in the second consecutive quarter of 2014 after 10 previous quarters of consecutive revenue declines. Total server revenue reached $3.2 billion, a 3.8 per cent year-over-year increase.

The second quarter of 2014 marks a key milestone in the server market for many vendors, as both shipments and revenue grew for the first time since this period in 2011,” said Errol Rasit, research director at Gartner. Despite the steady improvement in the server market, these positive results highlight the end of a slump, rather than a return to growth. Server providers must continue to ensure that a focus on growth remains a top priority.

 

Hyperscale

Research director Naveen Mishra said server makers are now basing their short term design and manufacturing decisions on the needs of data centres.

Though direct sales to customers only make up 16% of the total market for their servers, original designmanufacturer (ODMs) are likely to be influenced by their input because they are the fastest growing sector and, being bulk buyers, they are easier to engage with directly.

Which means that hyperscale data centres, despite being minority customers in the overall server market, are the most influential customers over the direction of product designs, according to Mishra.

Though direct sales to customers only make up 16% of the total market for their servers, ODMs are likely to be influenced by their input because they are the fastest growing sector and, being bulk buyers, they are easier to engage with directly.  This means that hyperscale data centres, despite being minority customers in the overall server market, are the most influential customers over the direction of product designs, according to Mishra.  Gartner has estimated that the hyperscale segment will contribute 82% of the revenue from direct sales of ODM servers to customers in 2014.  Mishra continued. Direct engagement with hyperscale data centres is the biggest contributor to ODM growth, these customers are willing to consider innovative data centre infrastructure designs that offer better scalability and can drastically reduce the total cost of ownership of servers - including power and cooling expense - compared with mainstream servers offered by traditional server OEMs."