Server Market: Introduction, Features, Benefits, and Top Suppliers

The server market is the backbone of countless critical and client-side business IT processes as it powers data centers and supports cloud environments.

The demand for better performing servers continues to rise, as businesses seek to fuel big data and advanced workload demands.

See below to learn all about the server market, from hardware to vendors:


Expected growth of the server market

Global server revenue fell 2.5% in the second quarter of 2021, compared to 2020, according to IDC. However, global server shipments have increased compared to last year. 2Q21 server revenue was $ 23.6 billion.

Experts expect the global server market to grow from 2021 to 2028: Grandview Search forecasts a compound annual growth rate (CAGR) of 7.8% over the period. The market size in 2021 is $ 85.75 billion; Grandview predicts a value of $ 145.31 billion for 2028.

The server microprocessor marketThe CAGR is expected to be 2% from 2021 to 2026, with Mordor Intelligence saying it is expected to reach $ 17.89 billion by 2026, from $ 15.19 billion.

Server form factors

Rack servers

Rack servers are versatile and can operate on their own. They are stacked vertically to save data center space. They can also be hot-swapped, assuming data is shared or pooled for redundancy.

Racks with many servers installed in close proximity to each other require high levels of cooling and, therefore, higher power consumption. If the temperature changes, they can also overheat.

Rack-mounted servers can also be installed at the edge of a network. Vendors like Steatite offer high-density edge servers with features like hot-swap and multi-core Intel Xeon processors. Some edge server nodes also operate in pairs for redundancy, which reduces the risk of lost workloads.

Read also: Best rack servers

Blade servers

Blade servers are very compact, capable of handling high performance workloads. Each server blade is a printed circuit board with its own processor, network controllers, and I / O ports.

They take up even less space than rack servers. Blades are small, and many can fit into relatively small areas of a data center. A host chassis powers multiple blades at a time, which saves energy.

Because blade servers are so compact, they are prone to overheating. To maximize the capacity of blade servers, a data center must have sufficient cooling methods.

Read also: Best blade servers

Tower servers

Tower servers are designed to be highly customizable. Users can design them to perform several functions, including as web and network servers. Each tower server requires its own input devices, rather than sharing them among other servers.

Tower servers take up space in data centers and do not fit into traditional racks. In data centers, their input devices can also be difficult to manage, as each server requires its own switches and cables.

Mainframe computers

Mainframe computers are huge computers capable of handling heavy workloads.

They differ from traditional rack servers and other basic servers in both size and programming: mainframes often run dedicated operating systems that do not exist on other servers. However, some, like IBM mainframes, also run common operating systems.

Mainframe characteristics include high redundancy for resiliency reasons and support for heavy I / O transactions.


Microservers are often used to serve web content or perform database processing and data analysis. However, they are less useful for general-purpose computing needs because they fulfill very specific roles.

Because so many microservers can fit in a single rack, microserver architectures conserve power and consume less power. This is also due to the design of the server circuit.

Modular servers

Modular servers belong to modular infrastructure, an approach to data center technology that allows businesses to build modules according to compute, networking, and storage needs. It also includes software management features.

Modular server environments define the degree to which infrastructure resources have direct access to other resources. Modularity is a form of disaggregation – making infrastructure resources independent of each other, while allowing them to work together.

Read more: Blade servers vs rack servers vs tower servers

Benefits of server forms

Server typeAdvantages
Rack servers
  • Save space in the data center by stacking vertically
  • Can be hot swapped
Blade servers
  • Considerably conserves space
  • Can handle high performance workloads
Tower servers
  • Highly customizable
  • Easier to cool
Mainframe computers
  • Capable of handling many transactions at once without losing performance
  • Secured
  • Takes up little space
  • Low consumption
  • Good for specific IT tasks
Modular servers
  • Allows to separate resources according to business needs
  • Increase efficiency as resources are designated with more precision

Server use case

HPE’s BladeSystem, for blade servers, conserves data center space and provides remote access, according to a senior financial industry systems analyst. “Servers take up little space in the data center. Network connections can be made with fewer cables… Remote access can be done directly to servers, ”they wrote in a Gartner Peer Insights review from BladeSystem. The ability to easily connect high performance servers to a network is important in large data centers, a necessity for ideal data transfer.

Solutions such as Dell EMC’s PowerEdge FX combine the advantages of several types of servers. The FX chassis uses a modular infrastructure, with a management console for storage, networking, and compute management.

“By purchasing DellEMC PowerEdge FX servers, you will get the best in the world of rack and blade servers,” said an assistant director of finance in Gartner Peer Insights. “It’s an all-in-one solution that combines a compute storage area network in a single enclosure… it’s durable and dense. PowerEdge FX includes the benefits of several types of servers.

Server Manufacturers

Here are some of the best providers in the server market:

  • Dell
  • HPE
  • Lenovo
  • Cisco
  • IBM
  • Inspire
  • Huawei
  • Fujitsu
  • Intelligence
  • Oracle

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