Domestic Server Market: x86 Server Growth Maintained Alongside Expansion of Linux Systems
Published2017.04.03 13:15x86 Server Market Growth Driven by Global Cloud Service Providers' Domestic Entry
Last year, South Korea's server market reached a scale of 1.0307 trillion won, representing a 3.6% increase compared to the previous year in terms of sales revenue.
According to a domestic server market report recently published by Korea IDC (CEO Hong You-suk), the number of servers sold reached 139,826 units, a 4.2% increase. The x86 server market, which dominates most of the market, grew 6.3% year-on-year last year to 749.5 billion won due to the increased domestic entry of global public cloud service providers.
Meanwhile, the non-x86 server market declined 2.8% year-on-year to 281.1 billion won due to continuous replacement with x86 servers, despite UNIX server expansions following some banks' next-generation projects.
Kim Min-chul further stated, "While UNIX systems based on non-x86 servers have been preferred in mission-critical systems due to their stability, unlike in the past, the improved flexibility and scalability of Linux systems are leading to conversion of legacy non-x86 server-based UNIX systems to x86 server-based Linux systems." He added that while the domestic Linux system market continues to expand, it surpassed the Windows system market scale last year.
Meanwhile, the report noted that the domestic server market grew last year due to increased x86 server volumes in public cloud data centers following cloud industry activation; however, from a long-term perspective, it forecasted that the future server market will contract due to data center downsizing in on-premises environments. Additionally, as vendor price competition intensifies due to technology standardization and ODM server growth weakening the competitiveness of existing server vendors, the report recommended that vendors should focus on developing diverse products such as converged or hyperconverged systems rather than merely supplying x86 servers.
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