Alibaba, Tencent, Baidu to Outpace Top Four U.S. Cloud Providers in Server Growth Through 2022, According to Dell’Oro Group

REDWOOD CITY, Calif., Feb. 12, 2018 (GLOBE NEWSWIRE) -- According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, the top three Chinese Cloud service providers – Alibaba, Tencent, and Baidu – are forecast to outpace the top four U.S. Cloud providers – Google, Amazon, Microsoft, and Facebook – in server growth by 2022.  Over the same period, Small/Medium Businesses (SMB) are accelerating migration to Public Cloud, while large Enterprises – i.e., Fortune 1000 companies, which includes the Private Cloud – will revert to on-premises data centers.

“The Cloud providers have been rolling out new data centers at a pronounced rate, driving Cloud server shipments,” said Baron Fung, Senior Business Analysis Manager at Dell’Oro Group. “Furthermore, given the weakness in server shipments to Enterprises/Premises data center, we believe we are well on track to hit our projected crossover point as server shipments to the Cloud eclipse those to the Enterprise by the end of 2017. We expect server shipments to SMB to lead the decline as this sector embraces the Public Cloud. On the other hand, we expect shipments to large Enterprises to stabilize, and begin to grow modestly by the latter half of our forecast period,” Fung explained.

Additional highlights from the Server 5-Year Forecast Report:

  • Server revenue is forecast to grow at a two percent five-year compound annual growth rate while server shipments are forecast to grow at four percent.
  • The top four U.S. Cloud providers are expected to continue to compose approximately half of the server shipments over the forecast period. However, the growth rate declines as data centers increase in scale and efficiency.
  • The top three Chinese Cloud providers compose about 10 percent of the U.S. top four server shipments and we expect that portion to double by 2022.

About the Report
The Dell’Oro Group Server 5-Year Forecast Report offers complete in-depth coverage of the Server market with tables covering manufacturers’ revenue, average selling prices, and unit shipments for Blade, High-Density and Stand-Alone servers. We also include shipments to Cloud vs. Enterprise/Premises by server form factors and provide Ethernet network attach rates (1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps and 100 Gbps) for each server category.  To purchase this report, please contact Matt Dear at +1.650.622.9400 x223 or email Matt@DellOro.com.

About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

                                                                                   Media Contact:  Matt Dear
                                                                                                                                       Phone:  +1.650.622.9400 x223
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