Does Cloud Really Hamper Server Sales? - InformationWeek
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5/30/2014
09:06 AM
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Does Cloud Really Hamper Server Sales?

Common sense suggests that mainstream cloud adoption will gut server sales, but that's not really happening, analysts say. Here's why.
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jagibbons
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jagibbons,
User Rank: Ninja
6/4/2014 | 2:41:30 PM
Re: Hybrid factor
Cloud is rent/lease which means something in the backend has to be a server. Perhaps better optimized in a multi-tenant configuration, but a high-end box with software on it.

Sure, there is hardware, but it takes a lot less hardware for five to ten organizations to share tenancy on a single set of servers versus five to ten organizations buying all of the servers themselves.
Todder
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Todder,
User Rank: Moderator
6/4/2014 | 1:01:07 PM
Re: Hybrid factor
Whether you buy, lease or rent a car, in the end you still need the physical unit. Cloud is rent/lease which means something in the backend has to be a server. Perhaps better optimized in a multi-tenant configuration, but a high-end box with software on it.
jagibbons
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jagibbons,
User Rank: Ninja
6/2/2014 | 6:42:02 AM
Re: How to judge in an economy with a lingering recessionary influence?
Good points, Charlie. It's hard to know what the new "normal" will be until the economy recovers.
batye
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batye,
User Rank: Ninja
6/2/2014 | 2:02:38 AM
Re: Hybrid factor
it like keep upgrading just to survive from day to day... and no any other way... 
batye
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batye,
User Rank: Ninja
6/2/2014 | 2:01:35 AM
Re: this word always makes me giggle
good point... but like in everything else in life... end game is to see profit - one way or other...
Charlie Babcock
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Charlie Babcock,
User Rank: Author
5/30/2014 | 8:17:33 PM
How to judge in an economy with a lingering recessionary influence?
The cloud service providers have picked up some of the slack that would otherwise exist in server sales. They built data centers with thousands of server units, and the server vendors know how to cater to them. You can't really make a long term judgment yet on what server sales look like in the age of cloud computing because we haven't gotten back a normal, non-recessionary economy. Fuller utilization of servers through skilled operations -- in both the public cloud and private enterprise -- will tend to flatten sales in the long run, in my opinion.
techgurudude
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techgurudude,
User Rank: Strategist
5/30/2014 | 12:19:27 PM
this word always makes me giggle
Whenever I hear the word cloud used in the tech world it makes me laugh. We shouldnt polish it as a new thing, it only confuses consumers. The cloud is what it was from the beginning of the internet just webhosting with an addon.

 

And when you see major software companies getting into a space that has always been around barely squeezing profits you wonder if thats it and have reached the peak.
jagibbons
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50%
jagibbons,
User Rank: Ninja
5/30/2014 | 10:09:46 AM
Hybrid factor
This data about server market growth isn't really suprising at all. The hybrid trend is a huge factor here. Many enterprises will want to run some applications or store some data locally for either performance or regulatory reasons. This requires continued investments, although at different levels, in processing and storage. These aren't all-or-nothing kinds of solutions.
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