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Growth in data services bodes well for sub segment of Teledatacom server market

With digital data traffic approximately doubling every year, demand for servers that manage and direct that traffic...


December 1, 2004  


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With digital data traffic approximately doubling every year, demand for servers that manage and direct that traffic over telecom provider networks – Data Infrastructure Servers (DISs) – will grow geometrically as well, according to In-Stat/MDR.

However, since voice traffic growth is nearly flat, voice-centric NEBS-Compliant Servers (NCSs), another segment of the teledatacom server market, will be similarly flat over the next several years, the high tech research firm says.

“While no one can argue with the logic that, since DISs are the pillars of the Internet, then as the Information Superhighway grows, so too must its stanchions,” says In-Stat/MDR analyst Eric Mantion,

“Some are still surprised when they see exactly what the opportunities are for DISs. This is primarily because DISs can run a wide variety of different types of applications – from Web caches to game servers to streaming media sources – so no one has previously been able to account for the whole DIS market before.”

A recent report from In-Stat/MDR also found:

* While thanks to Moore’s Law servers are becoming more capable every year, this doubling in performance every 18 months still lags behind the demand for data — by about 26% per year — and this difference is the main driver of shipment growth for DISs;

* Surprisingly, the highest growth sub-sector in the TDS market is the bladed NCS market. In fact, when you filter NCSs by form factor, non-bladed NCSs will actually decline in revenues at -16% on an annual rate while the bladed NCSs will surpass one billion dollars halfway through 2008, and

* While Sun has regained the top spot of the overall TDS and the NCS markets, HP is the market share leader of the DIS market.