Analysts Say HP, Dell and IBM Are Gone

American media recently published an article signed Jason Hoffman, which believes that just as containers have changed the way the shipping industry stores and transports physical goods, modern data centers have also changed the way we store and transmit digital products. Now, due to the huge amount of data to be processed, many enterprises have begun to build their own servers and data centers instead of buying servers or renting storage space from the three major server manufacturers HP, Dell and IBM. In the server market, HP, Dell and IBM are gone.

Data center is facing change

The following is the full text of this article:

Container and modern data center

In 1956, the first modern container ship sailed from Newark to Houston. This view now sounds simple: it is easier for people to transfer goods to trains, trucks or factories by carrying large containers on cargo ships rather than small crates. It took several years for this container shipping system to be established, improved and implemented. However, once put into use, the global shipping industry has undergone profound changes.

Containers have revolutionized the shipping industry because they make it easier to transport large quantities of cheap goods between ports. Suddenly, small crates and porters who depend on loading and unloading become irrelevant. During the long journey from one factory to another, goods can always be placed in containers, which saves a lot of time, money and manpower.

Today, a similar shift is taking place: this time, we transport digital products, not physical products. What we see is not the physical factory, but the rise of digital factory.

The more popular name of digital factory is data center.

Those small crates and hard-working porters are like the former data center server manufacturers Dell, HP and IBM. In the past, many enterprises bought servers from these three giants to store and transmit digital products, but now they choose to build their own servers and data centers.

Why? Because this is more conducive to improve efficiency. In terms of the impact on different enterprises, the rise of digital "data factory" is similar to the rise of physical factory. In other words, large enterprises will build their own digital factories. Those "crates" will be history of the past.

We have seen this change taking place. Small server clusters can no longer meet the needs of giants in the technology industry, such as Facebook, Google (microblog) and Amazon. Therefore, they have begun to build their own faster, larger and more flexible "data factory". Such a data center can handle much more data than the long-standing solutions of server suppliers.

A few months ago, Diane Bryant, CIO of Intel, shared some interesting data in an interview with the media to further prove the above view. She said that in 2008, 75% of Intel's server chip revenue came from three major server manufacturers: IBM, Dell and HP. In 2012, 75% of Intel's server chip revenue came from eight companies, not the above three giants.

Four years ago, most companies bought servers from these three giants. But the statistics Bryant shared show that the market is changing. HP denies the validity of these figures and claims that HP, Dell and IBM together still occupy 73.9% of the market. However, if you carefully examine the development and changes of the data center, you will find that Bryant's data confirms that the server industry has been affected.

Three development trends of server industry

Under this influence, there are three development trends in the server industry:

1. The size of each company has become as large as the above three server suppliers. Today, due to the existence of huge data, the number of servers required by a company is close to the whole business of a supplier. If Dell has 2 million servers and your company needs 1 million, your demand suddenly accounts for half of the business of server suppliers. At this time, it is unwise to do business with intermediaries. You can ask Google, which has ranked fifth among the eight server suppliers listed by Intel. The search giant doesn't sell servers by itself. It just needs so many servers to run its business, so it needs to build its own servers and data center.

2. The companies manufacturing parts are merging and standardizing. Another trend we see is that fewer and fewer enterprises produce server parts. We now have only three major manufacturers, such as Intel, Samsung and TSMC, and only two major hard disk manufacturers, such as Seagate and Western data. This unprecedented integration makes it easier for enterprises that want to build their own data center to realize their wishes, because integration means more standardization of parts. Enterprises can select the parts they want from all three parts manufacturers.

3. Commercialization of server parts. Once upon a time, the server itself was a commodity. But now we see that server parts have also been commercialized. The sale of these server parts, such as motherboards, network interface controllers and chips, indicates that the market has changed. It shows that enterprises are building their own servers and data centers, rather than buying servers from others or renting storage space from others' data centers. More importantly, Intel has begun to cater to this trend and provide quality assurance for individual parts.

We as like as two peas in the server and data center, are the same as the 50 years ago when factories and containers changed the shipping industry.

Shipping containers have changed the way we store and transport physical goods. Modern data centers have changed the way we store and transmit digital products. Before the emergence of data center, computers and servers were the center of our industry; Just as before the emergence of containers, small crates were the center of the shipping industry. But now, many companies have begun to build personalized data centers.

What does all this mean? It means that large enterprises will build and manage their own data centers. Small businesses will need to lease storage space in larger data centers. This is a new "cloud computing service". This concept will maximize our efficiency and promote our economy to a higher level.

Analysts Say HP, Dell and IBM Are Gone 1

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