Server Revenue Declines in Q3 as Cloud Computing Remains an Option for Businesses
December 12, 2013
Grazed from TMCNet. Author: Ed Silverstein.
Revenue in the global server market dropped 2.1 percent when comparing Q3 of this year and Q3 of 2012 – in what was called “weak performance” by Gartner. Sector watchers blame competition from cloud computing services, as well as some other causes such as the wider economy. Small businesses, especially, may find moving to the cloud instead of replacing an old server more sensible. Cloud is well-suited for many small companies.
The cloud offers more flexibility, leads to lower costs and provides more security and greater efficiency, according to media reports. In fact, earlier this year one MYOB survey showed that small- or medium-sized businesses that adopted Cloud technology were “twice as likely to see an earnings uplift in the past year.”…
While server shipments increased 1.9 percent in Q3 compared to last year, Jeffrey Hewitt, research vice president at Gartner, said in a statement, "The worldwide server market remains in a relatively weak performance mode as we move through the second half of the year.” Similarly, IDC reported the server market saw a 3.7 percent drop in sales in Q3. That represents two consecutive declines, CruxialCIO reported…
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