Server Sales Drop 25% - Cloud Computing making an impact?

The BBC published a report over the weekend of the back of IDC tracking data, that indicates that overall server sales is down 25% in the first quarter of 2009.

This is across the board of server types, and includes the top 5 vendors (HP, IBM, Dell, Sun and Fujitsu).

IDC officially point the finger at the global economy and how customers have pushed back the large purchases until 2010 while trying to maximise the current infrastructure. All make sense, but while they do not mention cloud computing specifically, you have to wonder if we've seen the hay day of server sales, as more and more companies wake up to the power of computing clouds.

We at aw2.0 are not a large consultancy by any stretch, yet even we can put a hard figure on the value of servers that will not be bought from Dell this year. It is not insignificant.

It is often touted as a major advantage of cloud computing, the ability to turn "CapEx" (Capital Expenditure) into "OpEx" (Operational Expenditure). In others, ripping up the 6 figure Purchase Order for physical boxed machines and instead paying for the use of the equipment as and when you really need it at only $0.10 an hour. In an economy where budgets are being squeezed or even eliminated, this is a very attractive proposition.

Cloud Computing, make no mistakes, is having and will continue to have an impact on physical amount of boxes companies purchase, whether they utilise the facilities of the public cloud, or utilise their existing setup and run their own private cloud.

The server manufacturers are not blind to this changing landscape and have started to make moves to serve this market place. Computing clouds from each of the top vendors are no doubt in the works to the point where we, the outside world, can simply go to the likes of Dell or HP with our credit card and purchase the power we need.

The landscape isn't changing, it already has changed.


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