IBM was able to sell UNIX value proposition also to the SMBs. IBM considers
the adoption of UNIX by SMBs as a most promising trend that will pave the way
for volumisation of UNIX servers. In other words, SMB customers who were
otherwise never buying UNIX have adopted it over the year. Industry experts give
two reasons for this. Firstly, the average price of a UNIX server from vendors
such as IBM has dropped down considerably. Secondly, low-end applications are
now widely available on AIX with the growing needs of an SMB. If we look at HP
in the UNIX space, it gained new consumers from the banking and telecom space.
|
Non
x86 Servers
|
|
Vendors
|
Units
2004-05 |
Units
2005-06 |
|
Sun Microsystems
|
3,540
|
4,079
|
|
IBM
|
876
|
2,051
|
|
HP
|
1,374
|
1,527
|
|
Others
|
56
|
54
|
|
Total Units
|
5,846
|
7,711
|
|
Source: IDC India,
2006
With 32% growth in volumes terms, this segment saw rapid escalation of
IBM that saw its stature grow in the UNIX space |
Meanwhile, if we look at vertical-wise consumption pattern of UNIX servers in
terms of applications, verticals such as telecom, absorbed servers for billing
and new applications, and BFSI for core banking, manufacturing for business
applications and education for high performance computing.
Blade Servers
Vendors feel the year gone by was great for blades. Blades was just a
buzzword few years back. But the aggression shown by players such as HP has led
to blades becoming part of the mainstream computing. Segments such as IT and
ITeS adopted a good number of blades. The three key drivers that drove the blade
market were power, small form and simple management. Blades are finding their
way into data centers, which look at lean mean computing environment. The rapid
adoption of blades is clearly changing the personality of the servers, and
typical candidates for blades are enterprises, which already have more tower
servers, and when these enterprises expand, they go in for blades.
From a pure hardware configuration perspective, there is absolutely no
difference between a rack server and a blade server. However, as blades have
double the density of processors as compared to the 1U rack servers, the amount
of heat generated per unit volume is more and hence one might think that the
performance would degrade. However, this is not the reality. Clearly, the year
went by provided enough pointers that blades are very well poised for a great
year ahead. IBM offered its eServer Blade Center that maintains temperature with
calibrated vectored cooling-a scientific way to keep temperature of the blades
in a range which helps in extracting the best processor performance.

Typical
candidates for blades are enterprises, which already have more tower
servers, and when these enterprises expand, they go in for blades |
Meanwhile, the year also saw the 64-bit RISC processor-based blade servers
entering the market. According to vendors, enterprises are piloting
mission-critical applications on them. To start with, RISC blades will be
limited to niche areas such as data centers of telecom companies and BFSI. As
enterprises complete successful test runs of mission-critical applications on
these servers, vendors are expecting RISC blades to enter the mainstream of
business computing.
The fear of an operating system getting crashed while running a
mission-critical application on a 32-bit platform is widespread. On the other
hand, enterprises have been running their critical applications on 64-bit RISC
platforms for decades; so 64-bit blades are more acceptable. According to
industry experts, chip designing and seismology applications are memory
intensive domains that need very high throughput. RISC blades can support such
memory-hungry application as well as business applications with similar
computing resource requirements such as core banking.
Sun attacked the blade space aggressively and it recently introduced its new
carrier-grade Netra Advanced TCA (ATCA) blade server family, which included the
world's first UltraSPARC and AMD Opteron processor-based ATCA blades. Sun
Netra ATCA blade server is said to have established a new standard for ATCA
blade servers in the industry, offering up to 30% better compute density and up
to 10% more performance as compared to competing ATCA blade products.
| The Server World: Slow and
Steady |
|
According to IDC's
Worldwide Quarterly Server Tracker, factory revenue in the worldwide
server market declined 1.9% y-o-y to $11.9 bn in the first quarter of
2006. Following ten successive quarters of y-o-y revenue growth, this was
the second consecutive quarter of revenue decline. Worldwide server unit
shipments growth slowed modestly to 9.5% in first quarter of FY 2006, when
compared with the same quarter of 2005.
Volume server revenue
grew 6.3% y-o-y and, although this segment represents the primary growth
engine for the overall server market, the first quarter of 2006
experienced the slowest growth in this segment in more than three years.
Revenue for mid-range enterprise servers declined 16.2% y-o-y for the
second consecutive quarter and the high-end enterprise server market
showed a 3.2% decline y-o-y, making this the sixth consecutive quarter of
declining revenue for high-end enterprise servers.
|
The
Q1 2006 Global Server Story
|
|
Rank
|
Vendor
|
Q1 2005
Revenue ($ mn)
|
Market
Share (%)
|
Q1 2006
Revenue ($ mn)
|
Market
Share (%)
|
Revenue
Growth (%)
|
|
1
|
Hewlett-Packard
|
3,345
|
27.7
|
3,335
|
28.1
|
-0.3
|
|
2
|
IBM
|
3,429
|
28.4
|
3,304
|
27.9
|
-3.6
|
|
3
|
Dell
|
1,274
|
10.5
|
1,321
|
11.1
|
3.6
|
|
4
|
Sun Microsystems
|
1,205
|
10.0
|
1,274
|
10.8
|
5.8
|
|
5
|
Fujitsu/Fujitsu
Siemens
|
988
|
8.2
|
823
|
6.9
|
-16.8
|
|
|
Others
|
1,840
|
15.2
|
1,796
|
15.2
|
-2.4
|
|
All Vendors
|
12,082
|
100.0
|
11,852
|
100.0
|
-1.9
|
|
Server Consolidation
Yet another major trend over the year was the concept of server
consolidation gathering further steam. Enterprises looked at optimizing their
servers and looked seriously at consolidation and virtualization. Vendors such
as Sun looked at server consolidation as a key driver of server sales across
traditional verticals. The need to optimize the usage of IT resources within the
enterprise prompted large enterprises to consider server and application
consolidation solutions. Several large IT spenders in the country, primarily
banks, telcos and manufacturing organizations moved up the IT maturity curve
very rapidly through consolidating their server infrastructure.
Outlook
India in the last few years has become one of the high growth areas for both
x86 and UNIX servers. For the ongoing year, x86 64 bit will gain momentum, while
on the other hand, 32 bit will co-exist, as there is customer base for pure 32
bit systems. But with 64 bit back ward compatibility becoming a reality, users
now are more comfortable adopting 64 bit systems and in the bargain future proof
their server infrastructure. Meanwhile, traditional verticals such as BFSI,
telecom and manufacturing will continue to drive the UNIX market. But vendors
will also be aggressive on other verticals such as airlines, steel, logistics
and textiles for UNIX. Blades will further gain traction during 2006-07, and
hosted environments such as data centers will ramp up their computing power by
opting for blades rather that going for conventional servers. The increasing
affordability factor in all forms of servers also indicate that organizations
will empower themselves by going for mix and match of server technologies as per
their unique requirements. In all, servers are expected to continue their
buoyancy in India during the year.
Shrikanth G
shrikanthg@cybermedia.co.in Page(s) 1 2
|