New reports say we’re buying clouds not servers…duh

As reported by Barb Darrow, “So what else is new? Dueling server numbers from IDC and Gartner don’t give the big server makers a lot to cheer about.” Check out the latest server shipment and revenue numbers from market watchers IDC and Gartner .

This includes the fact that the aggregate revenue across vendors was off 6.2 percent to $11.9 billion year over year, per IDC.  “Gartner said HP server revenue worldwide was off 17.5 percent to about $3.01 billion from $3.75 billion year over year and unit shipments off 13.6 percent to 586,857 from 678,963.”

The fact of the matter is that more and more expansion is occurring in the cloud, and not within the enterprise data centers.  I suspect we’ll see more declining server growth throughout 2014 and 2015.

The bottom won’t drop out of the server market.  However, as private and public clouds become more popular, we will see better shared server utilization.  As we get better server utilization, the less servers we’ll need.

Relevant Analyst

David S. Linthicum

SVP Cloud Technology Partners

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