Enterprise Server and Storage System Markets Face Headwinds
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Update time : 2020-02-28 11:16:00
“Despite recently slowdown, demand for servers by Cloud and Telco service providers in the U.S. and China is poised for growth over the next five years,” said Baron Fung, Director at Dell’Oro Group. “Meanwhile, server unit growth is forecasted to decline in the Enterprise sector, especially by small medium enterprises, as compute workloads continues to migrate to the Public Cloud. Furthermore, demand for storage systems is expected to stall, as server-based hyperconverged systems gain a foothold,” added Fung.
Following are additional highlights from the Server and Storage System 5-Year Forecast Report:
Server and storage system market revenue is projected to reach $136 B at a 7 percent compound annual growth rate (CAGR) over the forecast period.
Server unit demand is forecasted to moderate, as the Tier 1 Cloud service providers continue consolidate capacity and emerging accelerated computing and virtualization trends drive greater efficiencies. Multi-access Edge Computing (MEC) could offer long-term incremental growth opportunities.
The storage system market faces a decline in unit demand, although the transition to flash storage offers vendors incremental revenue growth opportunities.