Global Blade Server Market Trends, Challenges and Growth Prospect Forecast Till 2022

The Blade server market is expected to grow at healthy rate for the forecast period owing to increase-to-increase in adoption by end user. The blade server is alternative for cable server made of electronic circuits. These data centre servers occupy less space and consume less power as compare to cable server. The overall operation cost in blade server is less. Increase load on data centre along with effective utilization of data centre space has influenced the enterprises to adopt this technology.

The main drivers are high computing density, consolidation, virtualization and low cost operation. In blade server the size of the equipment is small and things that used to take several towers in cable are consolidated in less number of racks. This equipment has high density hosting and has increased the computing power. The maintenance cost is less. This server serves the need of present business environment i.e. business optimization. Vendor lock-in and high initial investment is a constraint. The customers have to be dependent on one vendor for any service on this field.

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The customer enters into a contract with the vendor and any parts replacement or repair is done by that vendor only. The cost of installation is high. The cost of blade, racks and the connection to network is high. Emerging markets, change in infrastructure and addition of security features are opportunity. Emerging market would need more data centers with increase in their size. The enterprises working with traditional data centers need more efficient, less power consuming and high computing capable server. Security features that reduce data loss and data theft are anticipated to have more demand over the forecast period.

On the basis of data centre type it is segmented as Tire 1, Tier 2, Tire 3 and Tier 4. On the basis of server it is segmented as professional services, consulting services, and installation and support services. On the basis of end user it is segmented as small size, mid-size, and large size enterprise. On the basis of verticals healthcare, manufacturing, retail, public sector, private sector, media and entertainment, banking, financial services and insurance (BFSI), and IT and Telecom. Growing requirement of data centre in developing sectors (Retail, media and entertainment, healthcare and banking and financial services) is driving the market to use of optimized power system, equipment’s that occupy less physical space and fast computing system.

North America is the key region for server market owing to increase in number of data centers followed by Europe. In north America US is the key region for this market. The US companies are adapting blade servers to reduce power consumption, reduces physical occupancy of data centers and high computing power. Asia-pacific is expected to have a huge rate owing to expansion of economies. Emerging economies in Asia-Pacific are see need of new data centers and high technological adaption. Many Multi-national companies are opening their data centers in emerging economics such as India, China and Brazil. Key player in this industry are Cisco Systems Inc., Hewlett-Packard Company, Dell Inc, Oracle Corporation, Lenovo Group Limited, Huawei, Fujitsu Limited, NEC Corporation, Hitachi Limited and SGI Corporation.

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Many companies launch new product or make strategic merger and acquisition to gain competitive edge. This increases the product range offering and improves the presence of the company in different locations. On June, 2010 Dell launched new product called PowerEdge M710HD Blade Server. This is a data centre virtualization optimizer that offer great input/output throughput and maximized memory density. On April,2011 IBM launched BladeCenter PS704 Express. It has high virtualization and consolidation power. PS704 is more power efficient and its footprint size in data centre. On June, 2013 HP launched ProLiant G8 blade server line. The product offers powerful hardware and software that helps in increasing server life cycle automation; it also provides continuous intelligence on server health, power usage and other important diagnostics. On October, 2013 Cisco has acquired Whiptail. This acquisition will Cisco in unified computing system and enhance its application performance by integrating scalable memory into unified computing system. On June, 2013 Western digital acquired VeloBit. VeloBit produces high input output optimization software. This will help Western Digital to enhance its software storage system in server industry.