IHS: Cloud Server Demand is Blowing Up

Market research firm IHS says the cloud server market is about to blow up.  The company expects cloud server shipments to reach 875,000 in 2012, nearly double what they were in 2010.  They forecast booming success for at least the next five years in the cloud server industry with growth rates ranging from 23-30% each year.

DigiTimes quoted Peter Lin, senior analyst for compute platforms at IHS, who said, “Clouds can be personal and geared toward the consumer – such as those offered by Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) – 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 technology costs down. The benefits are many, including higher utilization of server devices, low capital expenditure for clients, high scalability and access to the service across multiple devices.

IHS also says that ease of maintenance and ability to add more servers are key features of cloud servers.  The research company says that more businesses are going straight to server ODM manufacturers such as Taiwanese Quanta and Wistron to have their cloud servers customized to meet their specific needs.  IHS predicts that cloud servers will increase to 15% of the total server market in 2015, a leap from the 5% that they claimed in 2010.