NFV Home

Cloud Servers Poised to Overtake Enterprise Servers

By Laura Stotler July 20, 2015

The cloud is set to be the sole driver for growth in server shipments, according to new research from Dell’Oro Group. The firm found that cloud data centers will be the sole growth driver for server shipments beginning this year.

Unit shipments to enterprise data centers are set to decline, but that won’t stop the overall number of server unit shipments from growing, exclusively due to cloud computing. Dell’Oro found that the overall migration to cloud computing has had a massive impact on servers down to their very form factor, which challenges even the most basic definition of what a server is.

"Our recent interviews with end users, component vendors and system integrators, indicate that Cloud adoption is occurring faster than industry expectations," said Sameh Boujelbene, director at Dell'Oro Group. "The substantial increase in cloud uptake stems from both a declining skepticism of the cloud among enterprise accounts, and the willingness of cloud vendors to hear their customers' concerns, mainly related to security and resiliency, and to provide platforms to meet their needs.”

Dell’Oro anticipates cloud servers will comprise 50 percent of total server shipments by 2017, a statistic that was previously forecast for 2018. The findings echo upcoming research from MarketandMarkets showing cloud servers are poised to become very disruptive to the server market as a whole.

Image via Shutterstock

“The increasing business demand for maximum flexibility of resources and the rapid pace of change in computing demand will make cloud-based servers, the dominant model in the future,” states an excerpt from the upcoming report.

“Organizations can use the cloud server market either as production servers for a web server, mail server, application server, proxy server and database server; or as a development and testing server by application development and project management teams before entering the production stage; or as a disaster recovery center to recover the business data in case of major system failure.”

Dell’Oro’s analysis also breaks down a variety of Ethernet connectivity options based on server form factor for both cloud and enterprise or on-premises deployments. The research finds that at least eight different network speeds are expected to co-exist for server access during the next five years, as the server and data center markets continue to migrate to the cloud model.

Edited by Dominick Sorrentino

NFVZone Contributing Editor

Related Articles

Winners of the 2018 INTERNET TELEPHONY NFV Innovation Award Announced

By: TMCnet News    6/4/2018

TMC announced the recipients of the 2018 INTERNET TELEPHONY NFV Innovation Award, presented by INTERNET TELEPHONY magazine.

Read More

Harnessing Pervasive Visibility to Unleash the Power of the Cloud

By: Michael Segal    11/9/2017

Cloud computing is having an unprecedented influence on companies throughout the world; according to research from BDO, an overwhelming number (74%) o…

Read More

Nokia Introduces SDAN Solution

By: Paula Bernier    10/10/2017

Nokia has unveiled a Software-Defined Access Network solution. This offering consists of cloud-native software, integration services, open programmabl…

Read More

Stating with Attestation, a Core Foundation of Computer Security for Sensitive Systems

By: Special Guest    10/3/2017

The European Telecommunication Standards Institute (ETSI) held their annual Security Week event and along with a representative from the UK National C…

Read More

Assuring Business Outcomes on Your DX Journey

By: Michael Segal    9/7/2017

When it comes to implementing strategies for digital transformation (DX), there are nearly as many methods as there are companies using them.

Read More