CCJ – Cloud hurts: Server sales continue to slump

The latest server sales tally indicates that higher end systems are increasingly looking like glorified PCs that will experience the same slowing growth picture in the future.

And the cloud is increasingly getting the blame. Cloud computing is to server sales what tablets are to the PC market.

IDC said that server sales fell 3.7 percent in the third quarter to $12.1 billion. Gartner pegged server sales at $12.34 billion, down 2.1 percent from a year ago. Both research firms indicated that HP was the market share leader. HP and Cisco were the only server vendors to show growth in the third quarter.

The reasons for the server slump officially go like this:

Integrated systems are selling well and the market is consolidating.
Unix server sales are in a downward spiral.
And economic conditions are dicey in multiple regions.

More of the Cloud Computing Journal article by Larry Dignan

Tags: ,

Comments are closed.