Cloud Server Shipments Set to Explode

Since physical footprint is valuable in a data center, the type of equipment that will find the greatest adoption in the space likely will include both rack-optimized servers and highly condensed blade servers, with their modular setup made up of a single motherboard incorporating microprocessors, memory and a network interface.

Type of distributed computing

Cloud computing is a type of distributed computing, similar to grid or utility computing, in which a work object is split into parts and is at the time processed simultaneously by discrete computers that run over the Internet. In cloud architecture, the hardware, software and services are provided to users, who next pay for applications and storage space based only on the amount used.

"Clouds can be personal and geared toward the consumer - just as those offered by Apple, Google and Amazon - for users to store and manage their own data; or they can be oriented toward the enterprise for business operations. For the enterprise in particular, the cloud can be deployed as software, platform or infrastructure to help keep information innovation costs down. The benefits are many, including higher utilization of server devices, low capital expenditure for customers, high scalability and access to the service across multiple devices," said Peter Lin, senior analyst for compute platforms at IHS.

Given the massive potential of cloud computing in the years to come, a number of industry players have joined the fray either as hardware or software providers.

Hardware providers for cloud computing include server original equipment manufacturers; storage OEMs; server original development manufacturers; and microprocessor vendors. Software providers, to make up for it, include operating system vendors as then as application or service providers.

The rise of the white-box server-direct model will pose both an possibility and a threat to ODMs and OEMs alike, as they as a general rule do business at the same time. Both entities must balance those relationships during competing for new customers in what will be the fastest-growing and most important segment in the server industry through 2015, IHS believes.