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May 2013, Volume 2, Number 5

Can traditional server vendors survive the cloud push?

Ten years from now, will we look back on the traditional server vendors like IBM, HP and Dell as dinosaurs that could not withstand the giant asteroid that is public cloud? Or will we marvel at their resourceful ability to adapt -- and survive -- in the face of rapidly changing conditions? Can HP, IBM and Dell survive the cloud? Part 1: Can traditional server vendors survive the cloud push? Part 2: Server vendors must innovate to stem bleeding That's the $54.9 billion question -- which is the amount that organizations spent on servers in 2012, according to IDC, with IBM, Hewlett-Packard Co. and Dell Inc. garnering a combined 74.3% of that market. Public clouds come on the heels of server virtualization, which has already been a doozy for server unit shipments and revenues. In 2002, the ratio of physical to logical servers was almost 1:1, at 4.4 million and 4.5 million units shipped worldwide, according to IDC, and revenue was just shy of $50 billion. That heyday would soon be over: A decade later, revenue had increased a modest ...

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