Blade Server Market Challenges and Industrial Outlook from 2018 to 2024
Blade Server Market size will witness noticeable growth owing to rising burden on data centers coupled with an extensive use of data center space. Replacement of conventional tower and rack servers with blade servers owing to comparatively less space and power consumption will further escalate the blade server market growth. The growing trend of virtualization and consolidation of data center facilities will offer immense potential to the industry in the coming years.
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Complexity in installation and configuration of these servers will restrain the blade server industry growth. Limited storage capability is likely to pose a threat to this industry. These units require a huge initial investment for purchase. Moreover, economies of scale and the advent of microservers and their advantages over blade servers will pose a challenge to the growth of blade server market.
Industry players are majorly focusing on innovations in these systems by constantly upgrading the infrastructure. Continuous technological advancements in the industry are witnessed as a huge opportunity in this industry. For instance, HP designed OneView blade system for the expansion of its blade server portfolio. It helps in the improvisation of productivity of IT administrators with automated intelligence and intuitive user interface that simplify general tasks. Furthermore, penetration into the emerging markets has gained traction among the players in the blade server market.
On the basis of service, the blade server market can be divided into consulting, installation & support, and professional services. Installation & support services are expected to dominate the market over the forecast time frame owing to the extensive use of these services as a replacement of rack servers. Consulting services segment is projected to grow at the highest CAGR over the forecast time span.
Blade server market can be classified into end user as small, medium, and large-sized organizations. Large-sized organizations are anticipated to register the maximum share over the forecast timeline due to high deployment in these high-end computing environments. These organizations combine various servers into a single blade server for better management. Small and medium-sized organizations are predicted to grow at a decent rate owing to the rising adoption of these systems instead of rack and tower servers.
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On the basis of the industry vertical, the blade server market is divided into IT & telecom, public sector, BFSI, healthcare, manufacturing, energy, media & entertainment, and others. IT & telecom is expected to capture the maximum market share due to a high demand for modernized IT infrastructure. BFSI sector is predicted to showcase a significant growth owing to the high adoption of blade servers for the reduction of complexities in operations.
North America is anticipated to dominate the blade server market over the forecast time span. It can be attributed to the presence of various industry players in the region. The presence of IT giants in the U.S. has propelled the growth of this industry in the region. Europe is projected to showcase a significant growth rate owing to the ongoing technological advancements in the industry. Asia Pacific is expected to generate maximum revenue owing to rising number of data centers and high adoption of technological innovations in emerging economies including China and India.
Hewlett-Packard, Lenovo, Cisco Systems, Dell, IBM, Oracle, SGI, and Fujitsu are some of the key competitors in this market. The companies are adopting aggressive strategies, such as mergers, acquisitions, and new product development, to gain a competitive edge in the industry. For instance, in March 2017, HP partnered with Mesosphere and developed new SKUs that combine HPE BladeSystem infrastructure, HPE 3PAR StoreServ 8200, and HPE FlexFabric 10GB SAN Switches. The entire system contains four HPE Proliant blade servers, three agent nodes, and one mesos node.
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