AMD CAPTURES HISTORIC-BEST 16% OF SERVER CPU MARKET ACCORDING TO OMDIA DATA CENTER SERVER MARKET TRACKER

Com짯pe짯ti짯ti짯on in the mar짯ket for high-per짯for짯mance semi짯con짯duc짯tors tar짯ge짯ting data cen짯ter workloads is red hot accor짯ding to the latest Data Cen짯ter Ser짯ver Mar짯ket Tra짯cker from rese짯arch group Omdia.

In the ser짯ver CPU mar짯ket, AMD scored its best-ever quar짯ter from a mar짯ket share and sales per짯spec짯ti짯ve with demand from hypers짯ca짯le cloud ser짯vice pro짯vi짯ders, and Goog짯le in par짯ti짯cu짯lar, being a big con짯tri짯bu짯ting fac짯tor to AMD셲 strong performance.

The demand for ser짯vers across all mar짯ket seg짯ments remain짯ed strong in the second quar짯ter of 2021 amidst con짯cerns about order ful짯fill짯ment due to com짯po짯nent cons짯traints. The indus짯try saw 3.4 mil짯li짯on ser짯vers ship짯ped in the second quar짯ter of 2021, the same amount as during the record second quar짯ter of 2020. This was in line with Omdia셲 fore짯cast for the quar짯ter and resul짯ted in a total of $21.5 bil짯li짯on dol짯lars of ven짯dor revenue.

Full year ser짯ver reve짯nue is on track to grow 11 per짯cent, rea짯ching $92 bil짯li짯on. The strong reve짯nue growth is boos짯ted by a ste짯ady increase in ser짯ver pri짯ces. Omdia con짯ti짯nues to see ser짯vers opti짯mi짯zed for com짯pu짯te- and data-inten짯si짯ve workloads like arti짯fi짯ci짯al intel짯li짯gence and ana짯ly짯tics take hig짯her share of the annu짯al ship짯ments. The짯se are con짯fi짯gu짯red with a pool of co-pro짯ces짯sors, more memo짯ry and fas짯ter storage.

Com짯po짯nent shorta짯ge puts second half of 2021 ship짯ments at risk
The짯re is a dire shorta짯ge of some cri짯ti짯cal com짯pon짯ents like power manage짯ment inte짯gra짯ted cir짯cuits (PMICs) which could impact ser짯ver ship짯ments, par짯ti짯cu짯lar짯ly in the backend of the year. Ser짯ver ven짯dors have increased their com짯po짯nent inven짯to짯ry levels to miti짯ga짯te the shorta짯ge and limit the impact of long lead times. This short-term reso짯lu짯ti짯on is put짯ting extra strain on the alre짯a짯dy stres짯sed ser짯ver com짯po짯nent sup짯p짯ly chain and is pushing pri짯ces up.

Demands for semi짯con짯duc짯tors rela짯ted to power manage짯ment, have gone up expo짯nen짯ti짯al짯ly due to pro짯li짯fe짯ra짯ti짯on of smart짯phones, other per짯so짯nal elec짯tro짯nics devices, incre짯asing elec짯tro짯nics sys짯tems in cars, and Inter짯net of Things devices. Com짯pon짯ents like PMICs are nor짯mal짯ly manu짯fac짯tu짯red on an 8멼nch wafer to make it com짯pe짯ti짯tively pri짯ced. Over the last many years the짯re was no signi짯fi짯cant invest짯ment in 8멼nch fab capa짯ci짯ty as it was con짯side짯red a low mar짯gin busi짯ness. This makes it dif짯fi짯cult to sol짯ve the sup짯p짯ly shorta짯ge issue in the short term, said Manoj Suku짯ma짯ran, prin짯ci짯pal ana짯lyst, data cen짯ter com짯pu짯ting and net짯wor짯king, at Omdia. 쏛s the sup짯p짯ly shorta짯ge wor짯sened this year, some com짯pa짯nies star짯ted inves짯t짯ing in 8멼nch capa짯ci짯ty, but con짯side짯ring that capa짯ci짯ty expan짯si짯on takes at least a year to be pro짯duc짯ti짯ve, it is likely that the PMIC shorta짯ge will con짯ti짯nue until next year.

The semi짯con짯duc짯tor wars are in full swing
Along짯side AMD셲 suc짯cess in the ser짯ver CPU mar짯ket, Intel signal짯ed it will take a new approach to CPU archi짯tec짯tu짯re, intro짯du짯cing new designs for an effi짯ci짯ent and a per짯for짯mance core. The for짯mer would enable through짯put effi짯ci짯en짯cy and mul짯ti짯tas짯king with the low vol짯ta짯ge ope짯ra짯ti짯on crea짯ting head짯room to increase fre짯quen짯cy and sca짯le up per짯for짯mance for more deman짯ding workloads. The per짯for짯mance-core design appro짯pria짯te짯ly tar짯gets sin짯gle-threa짯ded appli짯ca짯ti짯on per짯for짯mance. Most important짯ly, the com짯bi짯na짯ti짯on of the짯se new micro짯ar짯chi짯tec짯tures would enable a wider ran짯ge of cus짯to짯mi짯zed CPUs that match appli짯ca짯ti짯on requirements.

As the batt짯le of the x86 archi짯tec짯tures con짯ti짯nues, Arm-based CPU ven짯dors have been making gre짯at pro짯gress in pene짯t짯ra짯ting the ser짯vers of the hypers짯ca짯le cloud ser짯vice pro짯vi짯ders. Alt짯hough Gra짯vi짯ton deploy짯ments at AWS some짯what slo짯wed down in 2Q20, Oracle셲 deploy짯ments of ser짯vers with Ampere셲 CPU ram짯ped. We also saw good momen짯tum for Fuji짯tsu and Huawei셲 Arm-based CPUs.

White box domi짯nan짯ce con짯ti짯nues as hypers짯ca짯le cloud ser짯vice pro짯vi짯ders grow and grow
The group of White Box Ven짯dors, inclu짯ding Wiwynn, QCT (Quan짯ta), Tyan (MiT짯AC), and Ingra짯sys (Fox짯conn), con짯tin짯ued to lead the mar짯ket as hypers짯ca짯le cloud ser짯vice pro짯vi짯ders remain짯ed stead짯fast in their expan짯si짯on. All North Ame짯ri짯can hypers짯ca짯le cloud ser짯vice pro짯vi짯ders increased their purcha짯sing quar짯ter-over-quar짯ter with Micro짯soft, Ama짯zon and Apple being par짯ti짯cu짯lar짯ly acti짯ve. As a result, White Box Ven짯dors gai짯ned mar짯ket shares in the quar짯ter, main짯tai짯ning their lead with a 26% reve짯nue mar짯ket share.

Dell repor짯ted par짯ti짯cu짯lar짯ly strong per짯for짯mance, gro짯wing their reve짯nue 4 per짯cent quar짯ter-over-quar짯ter and 12 per짯cent year-over-year. The ven짯dor attri짯bu짯ted its growth to a rebound in enter짯pri짯se demand and lar짯ge open RAN deals with Voda짯fone, Oran짯ge and Deut짯sche Telekom.

Omdia found an inte짯res짯t짯ing deve짯lo짯p짯ment in the quar짯ter was Inspur almost bea짯ting HPE from a ser짯ver ship짯ments per짯spec짯ti짯ve. The US ven짯dor ship짯ped just nine thousand more ser짯vers than Inspur. From a reve짯nue per짯spec짯ti짯ve, though, HPE had a solid quar짯ter with strong growth in high-per짯for짯mance com짯pu짯te and mis짯si짯on-cri짯ti짯cal deals. In fact, HPE indi짯ca짯ted that their order books for high per짯for짯mance com짯pu짯ting busi짯ness now exceed $2.5 billion.

World짯wi짯de data cen짯ter ser짯ver reve짯nue by vendor

 

Reve짯nue ($ million)

% chan짯ge

 

2Q20

1Q21

2Q21

2Q21 vs.
1Q21

2Q21 vs.
2Q20

White Box Vendors

$5,084

$4,748

$5,566

17%

9%

Dell EMC

$3,261

$3,521

$3,655

4%

12%

HPE

$2,747

$2,586

$2,727

5%

-1%

Inspur

$2,412

$1,577

$2,285

45%

-5%

Leno짯vo

$1,466

$1,435

$1,652

15%

13%

IBM

$913

$815

$851

4%

-7%

Hua짯wei

$1,270

$1,096

$820

-25%

-35%

Cis짯co

$822

$789

$729

-8%

-11%

Super Micro

$689

$622

$708

14%

3%

H3C

$481

$425

$518

22%

8%

Other

$1,817

$1,735

$1,972

14%

9%

Total

$20,964

$19,349

$21,482

11%

2%

Source: Omdia

We셶e tra짯cked the evo짯lu짯ti짯on of tech짯no짯lo짯gy con짯sump짯ti짯on models for many years and were not sur짯pri짯sed by the rene짯wed efforts of ser짯ver ven짯dors to pro짯vi짯de their infra짯struc짯tu짯re as a ser짯vice, albeit loca짯ted at the pre짯mi짯ses of their cus짯to짯mers, said Vlad Gala짯bov, direc짯tor, cloud and data cen짯ter rese짯arch, at Omdia. 쏧n the second quar짯ter of 2021 HPE, Dell and Leno짯vo all repor짯ted strong trac짯tion for their indi짯vi짯du짯al offe짯rings. Inte짯res짯t짯ingly, HPE also deli짯ver짯ed a super짯com짯pu짯ter as a ser짯vice. This is in line with a broa짯der trend we see at lar짯ge enter짯pri짯ses for lowe짯ring capi짯tal expen짯dit짯u짯re in favor of hig짯her ope짯ra짯ting expenses.

-ENDS-

The Omdia Data Cen짯ter Ser짯ver Mar짯ket Tra짯cker covers data cen짯ter and edge ser짯ver deploy짯ments across cloud ser짯vice pro짯vi짯ders, enter짯pri짯ses and com짯mu짯ni짯ca짯ti짯on ser짯vice pro짯vi짯ders. Using the report cli짯ents can iden짯ti짯fy key ser짯ver con짯fi짯gu짯ra짯ti짯on trends, the workloads run짯ning on them and whe짯re they are being located.

ABOUT OMDIA:

Omdia is a lea짯ding rese짯arch and advi짯so짯ry group focu짯sed on the tech짯no짯lo짯gy indus짯try. With cli짯ents ope짯ra짯ting in over 120 count짯ries, Omdia pro짯vi짯des mar짯ket-cri짯ti짯cal data, ana짯ly짯sis, advice and cus짯tom consulting.

Omdia was for짯med in 2020 fol짯lo짯wing the mer짯ger of IHS Mar짯kit, Trac짯ti짯ca, Ovum and Hea짯vy Rea짯ding. Sit짯ting at the heart of the Infor짯ma Tech port짯fo짯lio, Omdia rea짯ches over four mil짯li짯on tech짯no짯lo짯gy decis짯i짯on makers, influen짯cers and prac짯ti짯tio짯ners that form part of the wider Infor짯ma Tech com짯mu짯ni짯ty and has spe짯cia짯list rese짯arch prac짯ti짯ces focu짯sing on Enter짯pri짯se IT, AI, Inter짯net of Things, Com짯mu짯ni짯ca짯ti짯ons Ser짯vice Pro짯vi짯ders, Cyber짯se짯cu짯ri짯ty, Com짯pon짯ents & Devices, Media & Enter짯tain짯ment and Govern짯ment & Manufacturing.

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