Q1 Server Business Plummets: Key Findings From IDC


Form Factor Shifts: Blades Down, Density-Optimized Up

The shift to cloud computing is causing a shift in the types of servers built, with sales of density-optimized servers for cloud-based data centers rising while sales of blade servers fall, IDC said.

Density-optimized server revenue grew 54.8 percent in the first quarter compared to last year to reach $753 million thanks to a 39.3 percent increase in shipments to just under 215,000 servers. IDC estimates that density-optimized servers now account for 6.9 percent of all server revenue and 11.2 percent of total shipments. Dell is the leader in this market with a 47.3-percent revenue share.

Blade servers, however, seem to be falling out of favor. Blade server sales fell 2.9 percent from last year to $1.9 billion, or 17.7 percent of total server revenue. IDC said HP retained its No. 1 position with 44.6 percent of total revenue, followed by Cisco at 17.6 percent and IBM at 17.2 percent.