“The increase in the number of connected devices, as well as the number of workloads processed by data centers, will continue to drive demand for physical servers, although virtualization trends will dampen growth rates,” commented Sameh Boujelbene, Director of Dell’Oro Group. “Even though server sales will continue to grow, the deployment location for these servers is definitely changing. The economics of the cloud, including server pricing, resilience, scalability, and product lifecycle, along with improvements in cloud security, are promoting workload migration between servers and accelerating cloud adoption,” Boujelbene stated.
The report indicates that high-density servers, based on Intel x86 or ARM processors, will drive most of the growth in unit orders during the forecast period. The analysis also examines the various Ethernet network connectivity options for each server form factor—cloud versus on-premises or enterprise deployments—and reveals that a minimum of eight high-speed ports for server access is expected to coexist over the next five years.

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