Global server market continues to grow

15th October 2013

Sales of servers have risen despite competition from the cloud

A new report from UK-based SharePoint firm igroup has shown continued growth in the global server market, despite cloud hosting solutions gaining traction. The report indicates that the international server sales are expected to grow to around 15 million units in 2016.

‘Enterprise Server Hosting 2013’ suggests that the growth in server unit sales is being driven by four primary business factors:

  • Server Virtualisation
  • Growth of Cloud Computing
  • Growth in the HPC market
  • Increases in the number of connected Devices

The report argues that the continued steady growth in Internet traffic is a major factor driving sales and is expected to continue for the foreseeable future.

Given the current growth in the cloud hosting market, the findings should assuage some concerns for server manufacturers. On-premise server hosting will benefit from the opening up on new Web markets and is likely to be a area of growth for some time to come. It is also likely that cloud hosting will not fully take over the server market, as some businesses opt to maintain of their infrastructure.

On-premise hosting provides a number of potential benefits to businesses, like control and security. Whether or not these factors will be enough to drive continued server market growth in the long-term remains to be seen, however. Cloud hosting, on the other hand, offers lower costs, fewer required resources and the potential for a higher levels of uptime and speed through being delivered by a specialist provider.

When considering hosting options, which choice to make should be driven by the requirements of the business. In the long-term, one can expect an increased focus on differentiation between on-premise and cloud hosting.

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