Global Server Market Revenue to Hit $112 Billion in 2022, Telecom News, ET Telecom


New Delhi: Global server market revenue is expected to grow 17% (YoY) to $111.7 billion in 2022, according to a new report.

From a business perspective, the transformation to hybrid cloud and upgrades to existing infrastructure to handle increasing workloads will drive growth after a pause during the COVID-19 pandemic , according to Counterpoint Research’s “Global Server Sales Tracker”.

5G, automotive, cloud gaming and high-performance computing will remain key drivers of data center expansion for cloud service providers.

“In an inflationary but extremely dynamic environment, enterprises are looking to strengthen their infrastructure as they prepare for the demands of Web3.0 on the infrastructure side,” said research analyst Akshara Bassi.

“Enterprises are diversifying their IT infrastructure to meet evolving data needs and make customers cloud-ready,” Bassi said.

The market is changing with the introduction of “As-a-Service” and “pay per use” models by server companies, such as HPE’s Pointnext, Dell’s APEX and Lenovo’s TruScale.

The pivot of the business model has seen great success with greater flexibility given to the customer at minimal capital expenditure through the emergence of a workload-based infrastructure.

Server market revenues were flat in 2020 and early 2021 due to the pandemic and lower business spending on upgrading and expanding IT infrastructure.

In the second half of 2021, there was a backlog due to supply chain disruptions across the entire value chain, from accelerator chips to power ICs, which impacted the first half of 2022, according to the report.

“Dell and HPE are the icons of the server market, but see companies like Lenovo, Inspur and Supermicro competing strongly as demand for flexible custom configurations as bare metal options continues to grow,” Bassi said.

Edge server configurations will be a key driver of server shipment growth as enterprises begin to enable chip-to-cloud capabilities in devices and 5G deployments drive IoT use cases into all verticals.

Infrastructure spending to enable the metaverse will give servers a boost as they are the building blocks of the metaverse, the report notes.

Major internet companies and hyperscalers have already detailed their spending plans for Metaverse infrastructure.

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