Although 2019 closed with good numbers, the server market is now facing the uncertainty caused by the coronavirus crisis.
The year 2019 ended with positive figures regarding the global server market, increasing revenues by 5.1% and shipments by 11.7%, according to Gartner, thus slightly improving the annual computation figures. However, compared to 2018, the numbers are less favorable as server shipments worldwide decreased by 3.1%, and server revenues decreased by 2.5% compared to the full year of 2018.
The impact of the coronavirus outbreak is expected to moderate expected growth.
“The market grew again with a very strong result in the fourth quarter, driven largely by the return of demand for hyperscalers,” said Adrian O’Connell, senior director of research at Gartner. “However, the prospects for the global server market in 2020 are subject to significant uncertainty.
The impact of the coronavirus outbreak (COVID-19) is expected to moderate expected growth. Although the demand is expected from the hyperscale segment to continue for the first half of the year, reactions from other buying organizations will vary. “
Dell EMC tops the list of vendors in the global server market based on Q4 2019 revenue, as, despite a 9.9% year-over-year decline, the company gained 17.3% of the market share, followed by Hewlett Packard Enterprise with 15.4% of the market. IBM, for its part, experienced the highest growth in the quarter, with an increase of 28.6%.
Cloud service providers under review by COVID-19
Research companies Forrester and GlobalData assess the impact of the pandemic on cloud service providers.
With the COVID-19 virus putting more and more millions of people in the “work from home” category, cloud service providers are being tested. In response, global cloud leaders are testing their infrastructure and activating specific stress test procedures, research from Forrester indicates.
Both Forrester and another research company GlobalData have published evaluations of the impact of the health crisis on cloud services. Amazon web services, Google Cloud and Microsoft Azure, have all planed for spikes in demand and pandemic response policies.
In the past, most Cloud providers have suffered significant losses when received high peaks of demands, leaving users without service and lots of problems, like a considerable amount of downtime.
While the long-term impact of how people will work in the future is unclear, the pandemic offers a great case study and a first look at the benefits and disadvantages of cloud computing.
GlobalData believes that COVID-19 stimulates demand not only for cloud services but also for other IT solutions such as edge computing.
Cloud infrastructure and service providers whose businesses depend on vulnerable industries affected by the economic toll could face great challenges due to the changes in user behavior and the global economic state.
As companies close their physical stores and, when they can, make the transition to telecommuting, it becomes clear how vital servers are to the continuity of operations.
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