Cloud and China remain the Two Major Trends Impacting the Server Market, According to Dell'Oro Group

White Box Server Growth Significantly Outpaces Overall Market in Third Quarter 2014

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Dec 09, 2014, 09:02 ET

REDWOOD CITY, Calif., Dec. 9, 2014 /PRNewswire/ -- In a recently published report from Dell'Oro Group, the trusted source for market information about the networking and telecommunications industry, results revealed that Cloud and China were the two major trends that impacted server market growth, server vendor performance, as well as server migration to higher speeds during the third quarter of 2014.

"Server market performance remains fairly weak, depressed by server virtualization and server migration to the Cloud," said Sameh Boujelbene, Director at Dell'Oro Group. "We estimate that more than 25% of server shipments this year have gone to Cloud and we expect that portion will continue to grow. Consequently, traditional server vendors' performance is being negatively affected as White Box servers continue to gain traction in Cloud deployments, comprising about 10% of server shipments in the third quarter 2014," Boujelbene remarked.

The Server report also shows that US-based vendor performance was further depressed by Chinese server vendors as China is the fastest growing region for servers and is promoting customers buy local brands.

The Dell'Oro Group Server Quarterly Market Share Report is also the first report to examine servers from a networking perspective. It closely tracks several key areas of the market, including the migration to higher server access speeds (25 Gbps vs. 40 Gbps) and shows how it is impacted by server migration to Cloud.

About the Report
The Dell'Oro Group Quarterly Server Report provides complete, in-depth coverage of the market with tables covering manufacturers' revenue, unit, and port shipments for Blade, High-Density and Stand-Alone servers. We include network attach rates (1 GE, 10 GE, 40 GE, 100 GE and future port speeds), virtualization attach rates and VM density. Common equipment overlap between storage, servers and switching is also broken out, as well as White Box versus traditional enterprise server shipments. To purchase this report, please contact Julie Learmond-Criqui at +1.650.622.9400 x244 or email [email protected].

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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SOURCE Dell'Oro Group