back to article What goes up must come down, and that applies to the server market in Q2 too

"The bigger they are, the harder they fall" seems an appropriate phrase to describe the predicament facing server vendors. Following a record 2018, almost of all the major manufacturers recorded slimmer numbers in Q2. IDC stats show market revenue declined globally by 11.6 per year-on-year to $20bn, and shipments were down 9.3 …

  1. Anonymous Coward
    Anonymous Coward

    Q3+Q4 will be interesting

    I wonder how much of this was caused by supply-side (Intel not being able to provide a full range of chips due to 14nm capacity constraints) and how much was demand-side (IBM's decline was expected being mid-cycle for many products while Intel re-arranging their roadmap to cover missing 10nm likely left cloud providers slowing their purchasing).

    And will AMD make a significant appearance in H2, particularly on the cloud side, indicating serious competition for Intel?

  2. Bronek Kozicki

    If you no longer sell Intel Xeons for 10k apiece

    ... but instead put in your servers more performant AMD Epyc for half the price, does it still count as market decline? Because if it does then I expect more of it next year.

    1. elip

      Re: If you no longer sell Intel Xeons for 10k apiece

      Exactly this ^^^. Many vendors are just now starting to sell next gen EPYCs, and the performance and core-count gain from 1st gen is not insignificant. How many potential clients were waiting for this? I expect quite a few.

    2. Anonymous Coward
      Anonymous Coward

      Re: If you no longer sell Intel Xeons for 10k apiece

      CPUs are a relatively small part of the BOM in the server market. Even with DRAM and SSD prices crashing, all that means is they fit the servers with more than they would have done a couple years ago.

      The lower priced Epyc (and Intel's doubtless price cuts to match since they won't be able to rely on superior performance to justify higher prices forever) may account a few percent drop, but the US/China trade war and the UK/EU Brexit debacle will be more responsible.

  3. pavel.petrman

    What the hell is ODM Inspur?

    Am I the only one here who has never heard of them, even though they appear to be bigger than Lenovo?

    1. Johnny DeepFreeze

      Re: What the hell is ODM Inspur?

      ODM = Original Design Manufacturer

      https://en.wikipedia.org/wiki/Inspur

      "There's a new sheriff in town..."

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