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Developing Countries Drive Growth in the Low-End Servers Market, According to New Report by Global Industry Analysts, Inc.

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San Jose, California (PRWEB) May 09, 2013

Follow us on LinkedIn With advantages such as low-cost, improved processing and enhanced security, low-end servers are proving to be an ideal value proposition for enterprises seeking cost-effective yet efficient technology solutions. Low-end servers are primarily designed to fulfill the requirement of small and medium enterprises, data centers, and work groups. These servers are designed to run applications over an extended period of time with minimal human supervision. These servers are usually priced below US$ 25000. Low-end servers include file servers, print servers, web servers, email servers among others. Clustering and grid solutions are helping Low-End x86 Servers to replace expensive high-end servers. Market maturity, decline in prices, and technology developments in processing capability have largely enabled the use of low-end servers as business intelligence tools in the place of high-end desktops, primarily to extract information from ERP systems. Given the business opportunity in this lowest level of the markets pyramid, leading players are gearing up to target this market with uniquely designed server solutions.


Small and medium sized businesses and home offices have long been the primary target for low-end servers, as high-end servers fail to fulfill the requirements of these businesses given their high cost and inability to effectively process low workloads of data. The rapid proliferation of SMBs in developing regions like Asia-Pacific, Middle East, and Latin America bodes well for the market. Mushrooming of SMBs is largely the result of higher GDP growth, higher liquidity, and greater net incomes in these regions.


In terms of operating system, Windows remains the most popular operating system for servers, due to its simplicity as compared to other operating systems. However, Linux continues to enjoy significant commercial success on the low-end server platform. Features such as intuitive management tools, virtualization compatibility and greater interoperability with conventional corporate IT solutions, are factors driving Linuxs overall success in the market. In terms of architecture, unlike the higher priced servers, wherein chip architectures range from RISC architectures to IBMs POWER, HPs Alpha and Oracles SPARC, low end-servers are largely architectured around the x86 architecture, especially 32-bit x86.


Blade Servers, which stack numerous independent lower-end servers within a single chassis, have been growing in popularity due to the significant cost and energy savings offered. The next few years will witness a steady shift towards two-processor and four-processor blade servers built to meet the growing need for advanced computing requirements.


Accelerated adoption of cloud computing across large, small and medium sized enterprises alike is reducing the need for deploying expensive, high performance servers in-house. With the migration of key business processes onto the cloud, enterprises now require lesser capacity planning and therefore are increasingly adopting low-cost servers to handle the now lesser data workload. While this widespread migration to the cloud is fuelling demand for low-end servers, a key trend hampering growth is virtualization of servers. The reduction in physical servers as a result of running multiple operating systems on a single high-end server is weakening the business case for the use of multiple low-end servers.


As stated by the new market research report on Low-End Servers, Asia-Pacific represents the largest as well as the fastest growing market worldwide with a projected CAGR of 9.5% over the analysis period. Growth in the region is led by countries such as China and India. In Europe, subdued growth in IT spending, especially in Western Europe, is casting a dampener on demand patterns in the domestic market.


Major players covered in the report include Acer America Corporation, Advanced Micro Devices Inc., Cisco Systems, Dell, Inc., Fujitsu Limited, Hewlett-Packard Company, IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, and Sugon, among others.


The research report titled Low-End Servers: A Global Strategic Business Report announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, company profiles, and strategic industry activities. The report provides market estimates and projections in Units for all major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America and Rest of World.


For more details about this comprehensive market research report, please visit


About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.


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