Enterprise Servers Market Growth to Continue in 2019: Hewlett Packard, Dell, Cisco, Oracle, Odm Direct, Nec, Unisys, Fujitsu

The global enterprise server market was estimated to be valued at USD 15.6 billion in 2017, and is expected to reach USD 44.87 billion by 2023, registering a CAGR of 19.25% during the forecast period of 2018-2023. The market has been experiencing slight sluggishness in 2016, due to its maturity in the developed economies. However, the growth in the global market can be attributed to the growth in domestic markets of Asia-Pacific. This is due to the enterprises’ tendencies toward hybrid cloud models, in which they rely heavily on premise hardware. There has been an overall revenue decline of 0.8% in 2016, in the global server market. However, shipments have recorded a growth of 2%.

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Growing Trend of Server Virtualization and Consolidation to Drive the Enterprise Server market
Server virtualization enables an enterprise to build its disaster recovery solutions, by improving hardware abstraction capability and consolidating servers, to a less number of physical machines used in production. These server virtualization platforms also have software that help automate the failover during a disaster. By virtue of server virtualization application, isolation without application compatibility has been achieved, by consolidating several virtual machines. This helps in cutting down the server waste and move away from u2018one app, one server model’ for isolation of applications. As the trend toward cloud is on the rise, server virtualization also made enterprises to think of moving their data centers toward the usage of private cloud, initially. As the technology evolves and the public clouds mature, more data centers will tend to move the data out of the data center.

Major Players:
HEWLETT PACKARD, DELL INC., CISCO SYSTEMS INC., ORACLE CORPORATION, ODM DIRECT, NEC CORPORATION, UNISYS CORPORATION, FUJITSU LTD, HITACHI LTD, TOSHIBA CORPORATION, AND SUPER MICRO COMPUTER INC., amongst others.

Recent Developments
• August 2017: IBM and SAP to offer new co-created industry solutions for the retail and consumer packaged goods industries, to increase profitability and improve consumer experience. The solution uses near real-time data, to markedly improve planning and execution in the physical store. Unique data sources, such as IBM’s Metro Pulse, flow through SAP Cloud Platform, to provide insights that can be acted upon almost immediately.
• July 2017: IBM announced solutions that connect mainframes to IBM’s DS8880 family of primary all-flash storage systems. These solutions provide data encryption to ensure transactional, business intelligence and machine learning workloads, used for businesses running IBM Z environments.

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BFSI to Hold the Major Share by End User
Banking and financial institutions have been investing in enterprise server up gradation, to grab the opportunity of gaining competitive advantage, by substantially improving the server capabilities. Banking institutions are looking for smarter ways to improve the time to market and reduce the operational risk, by incorporate integrated systems that are able to handle disasters. As the infrastructure grew smarter with improvised infrastructure, the banking and financial institutions can implement strategic business initiatives, in core banking modernization, customer centricity, and analytics and risk management. With improved and fully optimized infrastructure and data centers, integrating with business partners (payment providers, government agencies, and insurance companies) will be easier and allow banking organizations to expand into new global markets.

United States to Hold the Major Share in North America
Being the hub of large-scale enterprises across all the industrial verticals, the United States held the major share of the global enterprise server market. The cutthroat competition in the market prompts the enterprises to adopt cost-effective modernized solutions. The Big Data and IoT penetration in the region have significantly transformed the size and scope of the enterprise server market in the country. With the existing competition, it has become imperative for organizations to evolve, in terms of IT scalability as well as capacity. Every day, American enterprises are engaging with countless new products, to send and receive various forms of information. The range of opportunity for communication is expansive in North America. The industry is investing billions of dollars in advanced networks and other infrastructure, so that they can accommodate the demand from the rapidly increasing data volumes.

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