Enterprise Server and Storage System Markets Face Headwinds

According to a report by Dell’Oro Group, the WW cloud server market is projected to account for 74% of the shipments by 2024.

The enterprise server and storage system markets are expected to face headwinds during 5-year forecast period of 2019 to 2024.

“Despite recently slowdown, demand for servers by cloud and telco service providers in the US and China is poised for growth over the next 5 years,” said Baron Fung, director, Dell’Oro. “Meanwhile, server unit growth is forecasted to decline in the rnterprise sector, especially by SMEs, as compute workloads continues to migrate to the public cloud. Furthermore, demand for storage systems is expected to stall, as server-based hyperconverged systems gain a foothold.“

Additional highlights from the Server and Storage System 5-Year Forecast Report:

• Server and storage system market revenue is projected to reach $136 billion at a 7% CAGR over the forecast period.
• Server unit demand is forecasted to moderate, as the tier-1 cloud service providers continue consolidate capacity and emerging accelerated computing and virtualization trends drive greater efficiencies. Multi-access Edge Computing (MEC) could offer long-term incremental growth opportunities.
• The storage system market faces a decline in unit demand, although the transition to flash storage offers vendors incremental revenue growth opportunities.