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IT managers are increasingly replacing servers with SaaS

Patrick Thibodeau | Dec. 9, 2013
Cloud providers take on a bigger share of the servers as overall market starts declining

The Purdue consolidation is the result of several broad directions: increased virtualization, use of higher density systems, and increase use of SaaS.

McCartney wants to limit the university's server management role. "The only things that we are going to retain on campus is research and strategic support," he said. That means that most, if not all, of the administrative functions may be moved off campus.

This shift to cloud-based providers is roiling the server market, and is expected to help send server revenue down 3.5% this year, according to IDC.

Gens says that one trend among users who buy servers is increasing interest in converged or integrated systems that combine server, storage, networking and software. They account now about for about 10% of the market, and are expected to make up 20% by 2020.

Meanwhile, the big cloud providers are heading in the opposite direction, and are increasingly looking for componentized systems they can assemble, Velcro-like, in their data centers. This has given rise to contract, or original design manufacturers (ODM), mostly overseas, who make these systems for cloud systems.

 

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