Cloud Server Shipments to Increase 35 Percent in 2012

Most technology experts expect companies to continue adopting cloud solutions like Software-as-a-Service and Infrastructure-as-a-Service, a trend that could make cloud servers the fastest-growing section of the server industry.

According to a recent report by IHS iSuppli, a market intelligence firm, shipments of cloud servers will reach 875,000 units this year, a 35-percent increase compared to 2011 and nearly double the 460,000 shipped in 2010.

"Clouds can be personal and geared toward the consumer … for users to store and manage their own data; or they can be oriented toward the enterprise for business operations," said Peter Lin, senior analyst for compute platforms at IHS. "For the enterprise in particular, the cloud can be deployed as software, platform or infrastructure to help keep information technology costs down."

IHS's research predicts cloud server shipments will expand between 23 to 30 percent for each of the following three years, reaching approximately 1.8 million units in 2015. The report said cloud servers accounted for about 5 percent of the server market in 2010, but they should ascend to 15 percent of total server shipments in 2015.

The report said the success of the servers used in cloud data centers will be evaluated based on energy efficiency, cost savings and expandability. Lin added that the advantages of cloud servers include low capital expenditures, increased scalability and access to the servers via multiple devices.

Most enterprises need servers capable of storing vast amounts of data and complex applications, and many recently began realizing the productivity and cost-cutting benefits of cloud computing. In a recent Network Computing report, cloud expert Carl Brooks told the source that small and medium-sized businesses will adopt the cloud this year to reduce data storage costs. Brooks said many companies will desire to combine public and private cloud services.