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On December 23, 2019, the analytical company TrendForce published some results of a study of the global server market. According to experts, in 2019, equipment sales remained at the level of the previous year due to the US-China trade war, which undermined demand and pushed manufacturers to transfer capacities from China to other countries.

This negative factor could have caused the server market to fall in 2019, but the situation was improved by the increased demand for equipment from data center operators in the second half of the year. First of all, we are talking about Amazon Web Service (AWS) and Facebook.

2018

Cloud Server Market Grows 29% to $86B - Counterpoint Research

The volume of the world market of the servers used for start and functioning of cloud services in 2018 reached $86 billion, having increased by 28% concerning the 2017th. On May 5, 2019 such data were published by analysts of Counterpoint Research.

Sales of the equipment in question increased due to demand from large data center owners, including Equinix and Digital Realty Trust, as well as leading cloud service providers such as Microsoft, Amazon Web Services (AWS) and Google. The companies also offer infrastructure-as-a-service (IaaS) services that provide users with a web-based computing infrastructure, said Prachir Singh, senior analyst at Counterpoint Research.

The largest manufacturers cloud servers experts name the HPE and Dell EMC companies which at the end of 2018 received approximately identical market shares - about 16%. The top five accounted for almost half of the revenue.

Specialists note the rapid growth of Chinese vendors, especially Inspur Power Systems and Huawei, which in 2018 increased server sales by 72% and 33%, respectively.

In addition, Taiwanese ODM manufacturers are strengthening their positions, supplying equipment directly to data centers. The share of such players, which, in particular, include Foxconn, Wistron and Inventec, has reached 39% of the total cloud server market in monetary terms.

Counterpoint Research Assistant Director Brady Wang says Chinese and Taiwanese companies are ramping up server shipments thanks to low prices. Large data center operators are increasingly choosing to purchase equipment from ODM vendors in order to reduce costs.

As a result, Inspur increased its cloud server market share in pieces from 3% in 2016 to 7% in 2018. The share of ODM companies has risen during this time from 19% to 25%.

Growth for 13.1% in pieces and for 30.1% in money - Gartner

In 2018, global server shipments increased by 13.1% compared to 2017, while market revenue jumped by 30.1%. The Gartner data published on March 18, 2019 testify to it.

Analysts did not give absolute values ​​characterizing the situation on the market. However, earlier they reported on the shipment of 11.4 million servers worth $60 billion in 2017. It turns out that in the 2018th sales of servers reached 12.9 million units for the amount of $78.06 billion.

The highest growth rates of the server market are registered in the Asia-Pacific region: here in 2018 there was an increase of 38.3% in money and 17.6% in pieces. In North America, equipment shipments increased by 34% and 15.9%, respectively.

The volume of the server market in the EMEA region (Europe, Middle East, Africa) at the end of 2018 increased by 3.1% in physical terms and by 20.4% in money terms. The Latin American market posted a 20.9% rise in terms of revenue, but fell 4.4% when counting unit sales. In Japan, quantitative server shipments increased by 2.1% in 2018 compared to 2017, and in terms of revenue, the market grew by 3.3%.

Gartner Senior Analyst Kiyomi Yamada cites the growing costs of building new and updating existing data centers owned by telecommunications operators and owners of hyperscale data centers (Amazon, Facebook, Microsoft, etc.) as reasons for the increase in demand for servers. These companies are increasing costs (although they are less than at the beginning of 2017) to meet the demand for communication services and cloud services, the expert notes.

Gartner does not name the world's largest server manufacturers for the entire 2018, but provides data for the fourth quarter (see tables below).

Up 5% to 12.42M - DRAMeXchange

On December 20, 2018 the DRAMeXchange analytical company provided results of a research of the world market of servers. Its volume, according to experts, in 2018 reached 12.42 million units, an increase of 5% compared to the previous year.

According to Mark Liu, Senior Analyst at DRAMeXchange, the main driver of server sales growth on a global scale belongs to US branded manufacturers (Dell EMC and HPE), which accounted for more than 30% of hardware shipments. More detailed information the balance of power in the market is presented in the table below.

The study says that during 2018, manufacturers of branded servers were able to show a significant recovery: in the first quarter, the companies experienced a slight decline due to the seasonal factor, but in the second quarter increased shipments by more than 10%, and in July-September achieved peak shipments in 3.2 million pieces.

In terms of percentage breakdown by server type, enterprise servers account for the majority of global shipments, and the share of equipment used in data centers rose to almost 35% in 2018 due to the fact that demand in this segment is less seasonal factor. ODMs delivering servers directly to data centers increased their revenue in North America by 17% in the first half of 2018, and by 12% in the second half of the year. The slowdown was attributed to adjustments in product inventories and cuts in capital expenditures.

According to DRAMeXchange calculations, Inspur shipped almost 1 million servers in 2018, of which about 30% were in the Chinese market. The vendor receives most of its orders from Chinese Internet companies, including such giants as Baidu, Alibaba Group and Tencent. There is also a 20% increase in shipments of Huawei servers due to stable orders from telecom operators.

2017: Return to growth - data of Gartner

In 2017, the global server market returned to growth due to the improvement of the macroeconomic environment and the growing demand for equipment from companies and owners of large data centers, according to research company Gartner.

Deliveries of servers on a global scale at the end of 2017 increased by 3.1% and reached about 11.4 million pieces, and revenue increased by 10.4%, having made almost $60 billion. In 2016 the market fell almost by 3% in money and showed almost zero growth in kind.

Speaking of growth drivers for the server market, Gartner VP of Research Jeffrey Hewitt pointed to “relatively strong economies” as well as “ positive results» in the corporate and hyperscale data center segments, achieved through the desire of businesses to implement more digital solutions.


It follows from the Gartner report that shipments of servers with x86 architecture processors increased by almost 9%, and manufacturers' income from sales of such equipment jumped by 23.7%.

The study provides the alignment of forces among vendors only for the fourth quarter. TAdviser studied quarterly reports of Gartner and summarized data on the separate companies. Based on analyst estimates, Dell EMC shipped more than 2 million servers in 2017, placing the company in first place overall. In second position is Hewlett Packard Enterprise (HPE) with 1.8 million devices released. China's Inspur Electronics continues to show the highest growth in revenue and server shipments.

2016

Record sales of HPC systems

In April 2017, the analytical company Hyperion Research, which was previously part of the IDC agency, published the results of a study of the global server market for high performance computing (HPC). Sales of this equipment rose to record highs thanks to supercomputers.

In 2016, the global market for HPC systems reached $11.2 billion, up 4.4% from the previous year. This revenue was the largest in the history of the market. The previous maximum value was recorded in 2012 - $11.2 billion.

Researchers say the HPC server market has grown thanks to mid-range and high levels, sales of which compensated for the decline in the segment of less expensive systems.

The greatest growth was shown by a category of supercomputers (products worth from $500 thousand and above) where sales jumped by 26.2% - from $3.2 billion in 2015 to $4 billion in the 2016th. Implementation of systems in price range$250-500 thousand rose by 18.2% to $2.3 billion.

Sales of equipment, which is offered at a price of 100 to 250 thousand dollars, decreased by almost 20% and amounted to $3.1 billion. In the segment of workstations ( computer technology to $100 thousand) there was a 7% decline to $1.7 billion.

HPC servers are closely related not only to scientific advances, but also to industrial innovation and economic competitiveness. For this reason, countries and regions around the world, as well as enterprises and universities of all sizes, are increasing their investment in high performance computing. In addition, the global race to achieve exascale performance will drive sales of high-end supercomputers, said Earl Joseph, CEO of Hyperion Research.

Decline in sales by 2.7% to $54 billion, HPE - earns most

In 2016, manufacturers produced a total of more than 11 million servers worth more than $54 billion. The report notes that quantitative shipments of equipment rose by only 0.1%, while the vendor's revenue decreased by 2.7%.

Jeffrey Hewitt, vice president of research at Gartner, said several factors shaped the landscape of the server market in 2016. In particular, the expansion of hyperscale data centers (such as those owned by Facebook and Google) has had an impact, resulting in significant hardware upgrades at these facilities. Server spending by companies has grown at a slower pace as organizations and businesses increasingly embrace virtualization and cloud services Hewitt noted.

The x86 processor architecture remains the dominant server platform used in large data centers around the world. The growing demand for integrated systems (including hyper-converged solutions), which, however, remains small in the entire infrastructure equipment market, also stimulated sales of x86 systems in 2016, Gartner reported.

The study does not provide a balance of power among manufacturers at the end of 2016. Only the position of vendors according to the results of the fourth quarter is indicated. In this period, Dell broke into first place in server shipments with a 19.1 percent share. HPE, which previously led the way in terms of equipment volume, reduced its shipments by 19.4%, as a result of which the market share fell to 17.2%. At the same time HPE remained on the first place on incomes from sales of servers.

2015

Record sales

On March 10, 2016 the analytical company published results of a research of the world market of servers. Its volume, as experts found out, has reached a record value.

According to IDC, in 2015 the total revenue of manufacturers from sales of servers in the world amounted to $55.1 billion, which is 8% more than a year earlier. System deliveries increased by 4.9% to 9.7 million units, the highest in the history of the market.

In October-December 2015, server sales increased by 5.2% year-on-year to $15.3 billion. This quarterly growth was the seventh in a row and was the result of an ongoing cycle of hardware upgrades in companies and the expansion of data centers of cloud providers.

As the upgrade cycle seen in 2015 comes to an end, market focus has begun to shift towards software-defined infrastructure and hybrid management environments as companies begin to transform their IT infrastructures and prepare for demand in the coming years for such IT solutions like the Internet of Things and cognitive analytics, says IDC analyst Kuba Stolarski. - In 2016, the growth rate of cloud infrastructure expansion is expected to accelerate due to the development of existing business and the launch of new cloud data centers around the world.

Hewlett Packard Enterprise (HPE) remained the largest producer of servers, at which revenue in the market in 2015 rose by 5.8% to $14.1 billion that corresponds to 25.6% in total volume. The second place was kept by Dell (17.5%), and the third - by IBM (13%). The latter continues to cut server sales after selling part of that business to Lenovo.

The Chinese vendor, in turn, is actively strengthening its position as a server manufacturer thanks to this deal. In 2015 Lenovo gained in the market of $4.1 billion that is 170% more, than the previous year. It allowed to outstrip Cisco which completed 2015 with a market share in the amount of 6.5% against 7.5% at Lenovo.

Every third server in the world is not needed

About 10 million of all physical servers in the world - which is 30% of their total - are in a "coma" state. This means that they do not process or issue any information for six months or more, but continue to consume electricity at the same time, follows from a report published in the summer of 2015 by the consulting company Anthesis Group in conjunction with Stanford University.

Find idle servers with load measurement CPUs or memory will not work - namely, these methods are most popular in companies, the report says. Therefore, analysts took advantage of a special software, which polls servers for operational data - information that the server is working to process.

The unused servers included both standalone servers and servers used to support virtual environments. This idle asset is valued at $30 billion, assuming an average server cost of $3,000, and excluding infrastructure costs and ongoing server maintenance and maintenance costs.

If it were possible to turn off all the unused servers in the world, the energy savings would be 2.2 GW from the servers themselves and another approximately 1.8 GW from cooling and infrastructure.

Anthesis's results were in line with other studies, including studies by the Uptime Institute and McKinsey & Company, which found only two-thirds of the servers were in use. Anthesis received the same figure, but for the whole world as a whole. What's more, according to McKinsey, it's rare for a business to have server utilization above 6%.

2014: Growth by 3%

On March 3, 2015 the research company International Data Corporation (IDC) published results of the analysis of the global server market. Its volume, as experts found out, has reached a record high, which is a big merit of China.

The latter in 2014 earned $ 9 billion from servers, raising this income by 5.7% year on year. The five of the largest producers also included Cisco and Oracle, which occupied 5.7% and 4.6% of the market, respectively.

2012

The blade market is deadlocked

Gartner experts point out that as multi-node servers gradually take over the segment of low-load systems, and blades are usually used as the basis for FBI systems, increasingly blade servers are also being used for complex applications such as high-load systems, data warehouses, ERP and CRM.

Blades are also well suited for in-memory databases. All of this has increased the overlap between blades, multi-node and rack servers in various areas, forcing vendors to be present in all these segments in order to optimize workloads in each specific form factor. Gartner recommends that customers require proof of server performance for all load scenarios from their vendors.

Magic Quadrant for Blade Servers

As for vendors, there is also a very interesting situation. After HP and IBM dominated the blade server market for a long time, Cisco entered this market in 2009 and very quickly became a leader, gradually winning market share from these companies. HP, IBM and Cisco in 2012 controlled 80% of the global blade server market in quantitative terms.

Fujitsu is also a strong player in the blade market according to Gartner's April 2013 Magic Quadrant. Among niche players Huawei, Oracle, Hitachi and Bull are designated, SGI company is placed in a quadrant of visionaries.

Results of the year: decrease in sales by 1.9% to $51.3 billion

For the whole of 2012, the volume of revenue in the global market for the supply of server products decreased by 1.9% compared to 2011 and amounted to $51.3 billion. 1 million units.

As for other regions, according to Gartner, the highest growth rate of server shipments was recorded in the first quarter of 2012 in Eastern Europe, where they increased by 16%. In terms of revenue growth in this period, Japan was the leader (+10.6%).

Top5 server manufacturers in the first quarter of 2012 by revenue, $mln

IBM. Be that as it may, the shares of both players are very close in terms of money - 28.1% and 27.8% of the market. While in unit terms, HP ranks first with 29.2%, and IBM is only third with 11.4%.

Revenue of suppliers of servers in the first quarter 2012, $ million

Shares of server suppliers in the first quarter of 2012 by shipment volume

Source: Gartner, May 2012

In terms of market segments, the segment of non-x86 devices, including servers based on RISC, EPIC (Itanium) and CISC processors, decreased in volume by 16.1% in annual terms to $3.4 billion. This segment accounted for 28.5% of the total market volume. At the same time revenue of a segment of x86 servers increased by 4.5% to $8.4 billion, and in piece expression the segment grew by 3.2% to 1.9 million servers. Blades also grew 7.3% in revenue and 4.8% in shipments compared to the start of 2011, according to IDC.

2011

4th quarter and results of the year

Market size

Market segments

By form factor

According to IDC, over the last three months of 2011, the decline in profits occurred in all three largest market segments for the first time since 2009: sales of hi-end systems decreased the most - by 18.4% qoq to $3.7 billion.

Growth of the largest segment of x86 servers slowed down in the 4th quarter 2011 so revenue of vendors in this segment for the last three quarters of 2011 decreased by 1.7% to $9.1 billion, shipments, on the contrary, grew by 2.9% up to 2.1 million units.

In the blade server segment, manufacturers' revenue in the 4th quarter of 2011 grew by 8.3% in annual terms, and shipments - by 1.7% in piece terms. In total, the blade server segment, including x86, EPIC and RISC servers, accounted for $2.3 billion in Q4 2011, accounting for 16.1% of the total market.

In November 2011, IDC also introduced a new segment of the server market called Hyper-Scale Servers, later renamed Density Optimized Servers (literally - "fully optimized servers"). Such servers are designed for large data centers where workloads are distributed and parallelized. The design of such servers takes into account three factors - performance, energy efficiency and density. In the 4th quarter 2011 the segment of such servers in annual terms grew by 33.8% to $458 million, and deliveries grew by 51.5% to 132.8 thousand units. Now this segment accounts for 3.2% of the server market in terms of money and 6.1% in unit terms.

By software platform

Demand for Linux servers in 2011 was strengthened by the growth of the high-performance computing (HPC) market and the deployment of cloud infrastructures. This is evidenced by an increase in revenue of vendors in this segment (it reached $ 2.6 billion) by 2.2% year on year in the fourth quarter of 2011. Income from sales of Linux-servers amounted to 18.4% of the turnover of the global server market, up 1.7% compared to the fourth quarter of 2010.

Demand for Microsoft Windows servers declined slightly in the fourth quarter of 2011, with server revenues in this segment down 1.5% year on year. Quarterly revenues of $6.5 billion from sales of Windows servers account for 45.8% of the total revenue of vendors in the server market, which is 2.6: higher than in the same period in 2010.

Unix server revenues fell 10.7% year on year to $3.4 billion, accounting for 24.2% of the global server market. The Unix server market has not returned to pre-crisis levels, regardless of changing market dynamics parameters.

3 quarter

Volumes of world deliveries of servers, according to research company Gartner, in the third quarter 2011 grew by 7.2% year on year, while revenue grew by 5.2%.

Jeffrey Hewitt, vice president of research at Gartner, noted the growth in global server shipments in the third quarter of this year, noting significant regional fluctuations. “All regions showed an increase in the volume of deliveries and revenues of vendors, with the exception of Western Europe, which was marked by a decrease in revenues by 4.9% over the reporting period. At the same time, the Asia-Pacific region showed the most significant growth in supply volumes, showing an increase of 23.9%. And in Eastern Europe, the highest growth in supplier revenues is 27.4% per quarter,” the analyst emphasized.

Forward broke servers on the x86 platform. The volume of deliveries of this equipment grew by 7.6%, while at the same time increasing in income by 9.3%. Western Europe and the United States were unable to show growth in sales of this type of server due to the comparatively stronger results in the third quarter of 2010. Global shipments of Unix RISC/Itanium servers were down 6.8%, but vendor revenues were up 3.5% year-over-year. Servers in another category, primarily mainframes, saw a 6.9% decline.

The top five global suppliers increased revenue in the third quarter of 2011. Oracle was also an exception: HP rolled back 3.6% year on year, while Oracle held on to losses. In terms of revenue, IBM led the global server market (see Table 1), generating just over $3.8 billion in revenue with a combined market share of 29.7% in the third quarter of 2011. On an annualized basis, the company's share decreased by 0.5%. Much of IBM's revenue growth came from sales of its Power Systems product line, with some input from System X.

According to Gartner estimates, the ranking of top vendors is as follows: IBM tops the list with $3.846 billion in revenue and a 29.7% market share, followed by HP with $3.802 billion and a 29.3% share, followed by Dell, with indicators of $1.903 billion and 14.7%, Oracle ranks fourth with revenues of $0.763 billion and a share of 5.9%. In fifth position is Fujitsu with revenues of $0.603 billion and a market share of 4.7%.

Table 1. Estimated earnings of leading suppliers in Q3 2011

Vendor

Income ($US)

Market share in 3Q11 (%)

Income ($US)

Market share in 3Q10 (%)

Growth 3Q10-3Q11 (%)

3,802,440,047

29.3

3,942,615,230

32.0

Dell

1,903,221,687

14.7

1,789,631,319

14.5

Oracle

763,610,285

763,964,420

Fujitsu

603,044,868

582,244,543

Other vendors

2,048,599,229

15.8

1,533,530,740

12.4

33.6

Total

12,967,723,917

100.0

12,329,405,918

100.0

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Buying servers. Cooperation with ittello.ru is profitable terms and fair prices corresponding to the residual life of the equipment. We work with server platforms manufactured by IBM, HP, Supermicro, ASUS and other vendors. Of interest are any servers in rack (1U - 5U), tower and blade versions, both with processors, RAM, components, and without them.
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Purchase of new equipment with offset of old

We offer retail customers to take advantage of the opportunity to purchase new equipment in exchange for old equipment at a convenient and profitable scheme. Do you want to upgrade your security system with more performance and modern equipment? TRADE-IN allows you to replace with completely new Novicam solutions. It is much easier, faster and more convenient than constantly improving old equipment, taking into account the constant development of technology.

Pros for you:

  • It takes less money to upgrade a CCTV system
  • Professional advice from us on all exchange issues
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  • Choose models, and we will offset and calculate their cost
  • The exchange, sale and purchase of equipment are accompanied by all necessary documents, including the contract
  • Your old equipment will be disposed of in accordance with strict environmental regulations for electronic equipment

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