IDC: China Becomes a Bright Spot in the Global x86 Server Market

[Latest] According to IDC latest data show that the Chinese market as the second quarter of 2014 x86 server market growth engine, including China local companies gratifying results, the wave of servers in the shipments continue to lead.

According to research firm IDC latest data show that: the second quarter of 2014, China x86 server market, the overall shipment of 448,000 units, sales of 1.43 billion US dollars, an increase of 22.2%, respectively, 34.6%; global X86 server market overall shipments 2.2 million units, with sales of 9.8 billion U.S. dollars, an increase of 1.5% and 7.8% over the same period of previous year. China has become the highlight of the global server market growth.

According to the data, Inspur server shipments increased by 69% YoY in the year-on-year basis, contributing a major part of the market growth and surpassing IBM, HP, Lenovo and Huawei in terms of market share and continued to lead the 2014 Q2 .

From the product form, the rack server is the main force of the market, but also the biggest driver of growth. During the quarter, rack-mount server sales and shipments increased 43% and 34.4% YoY, respectively, while shipments increased 2%.

Inspur shipments in this area grew by 76.8% YoY. Xu Zhen, general manager of Inspur Server Products Division, said that in the first half of 2014, Inspur's market share in traditional high-end industries such as finance, telecommunications and electricity rose rapidly and became a wave At present, Inspur is the only one that has been nominated by China Mobile, China Unicom and telecom operators at the same time. NF5280M3, NF8560M3 and other major two-way and four-way rack servers have been installed in Industrial and Commercial Bank of China Construction Bank, Postal Savings Bank batch deployment.

Tower server has not shrunk yet, the impact on the market is minimal. Sales of blade servers fell 4.7%, sales, sales growth both lower than the average growth rate. The rapid development of innovative form servers such as high-density servers and the entire rack server that Scorpio plans to spawn has created a certain impact or even an alternative to blade servers.

From the industry market, the Internet is still the largest industry market, but also the main reason for the overall market growth. Baidu, Alibaba, Qihoo and other large Internet operators cloud computing, games, search and other business has developed rapidly, the demand for the server is very strong. Jingdong, on the 1st shop, CCTV and other small and medium-sized operators procurement also continued to expand. IDC analysts believe that the current information technology is in the second generation platform to the third generation platform (including cloud, mobile, big data, social) switching period, China's smart phones, tablet PCs, wearable terminals and other mobile terminal equipment holdings continued A sharp rise, which provides a powerful impetus for the growth of the procurement volume of the Internet server industry.

Inspur server general manager of Internet Division Wang Hongli said that the Internet industry increasingly specialized procurement, segmentation, storage servers, high-density servers and other industry products become the main force of procurement. Wave of the above types of products have achieved good results, the fastest growing Smartrack server cabinet, cabinet server market accounted for 70% of the total shipments, with the release of Scorpio standard V2.0, this form of server market The proportion will be further improved to replace high-density and rack-mounted servers, becoming the main product category purchased by Internet operators.

In the cloud computing trend, the Internet industry has become a powerful impetus to the server market. In view of the trend of 48% growth in sales volume in 2013 and 32% of the total market volume, the Internet industry is also leading the revolution in data center and server deployment mode while continuing to grow at a rapid pace. The server market is also in response to this change, server vendors have introduced for the Internet industry's custom server products.

There are indications that the Internet industry is becoming the focus of competition for traditional server makers. Especially the development of cloud computing, the construction of large-scale data center makes Internet providers pay attention to the cost problem, and the traditional brand server is not suitable for mass installation into the cloud computing data center due to the high cost. As a result, Internet providers are turning to their own design and ODM for server deployment. As a result, orders from white-label server vendors have increased substantially while branded server vendors have seen slow-moving sales.

The government sector with the second largest scale has enjoyed a steady recovery in the market. The 12th Five-Year Plan has started construction in areas such as social security and public safety. These projects have become the direct driving force behind the revival of the government sector. The revival of the government sector has played a significant role in boosting high-end products. Cloud construction in the public security, public health, social security and other fields is being carried out on a large scale. These customers prefer cloud computing solutions based on large servers such as four-way and eight-way. Industry cloud area continues to expand, driving the growth of high-end business. IDC data show that Inspur shipments of eight-way server in the first half of 2014 continue to maintain the industry's first place.

IDC believes that the server market in 2014 has got rid of the weakness in 2013 and will resume growth. In the second half of the year, the server market will also reach the peak of procurement in traditional industries such as government, finance, telecommunications and manufacturing, and the market will maintain steady growth. In the long run, the third-generation platform technology will further develop and popularize. The enormous development potential of China's server market needs to be developed and is full of opportunities and challenges.

For China's overall server market in 2013, domestic manufacturers further expanded their market share. As a number of major projects under the 12th Five-Year Plan will likely take off in 2014, the market of government and related industries will maintain a moderate growth rate and the market share of domestic server makers will continue to expand.

With the cloud computing, big data and information consumer markets going to be more mature in 2014, the mid-to-high end server market is in a state of strong supply and demand. In particular, the four-way server is the focus of competition among manufacturers. The multi-channel high-end x86 server market for mission-critical applications will maintain steady, rapid growth. In large-scale systems and application integration of key systems, multi-path cloud computing solutions show obvious advantages in terms of performance, energy consumption, management, scalability and cost. More and more industry customers are beginning to adopt multi-path x86 Server cloud computing solutions.