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Server orders to remain robust in 2H21

Server demand is expected to stay strong throughout the second half of 2021, thanks to robust demand for datacenter servers and increasing orders for servers from traditional enterprises, according to sources from the server upstream supply chain.

However, shortages of components and switches are still expected to undermine the supply chain’s server shipments in the second half.

Digitimes Research’s latest figures show global server shipments will rise 13.3% sequentially to come to around 4.7 million units in the third quarter, hitting the peak of 2021. The volumes will then slip 3.9% sequentially in the fourth quarter.

Server chassis maker Chenbro Micom pointed out that the company already has visibility till the end of 2021 for 80% of its orders, thanks to robust demand from its China- and US-based clients.

Chenbro’s revenues are expected to rise a double-digit percentage on year in 2021 with sales to continue rising in 2022. In addition to new cloud computing services, Intel’s new server platform is also expected to drive up server orders. Currently, over 50% of Chenbro’s clients have already turned to procure models using Intel’s Whitley platform.

HP Enterprise (HPE) CEO Antonio Neri pointed out that the lingering COVID-19 pandemic has a negative iimpact on the server upstream supply chain, but end demand has remained robust.

Neri believes enterprises will begin considering building a more rigid IT environment and will have increasing reliance on HPE’s edge computing and cloud computing platforms.

Dell COO Jeff Clarke also expects more enterprises to up their IT expenses in order to fulfill their employees’ remote working needs. DIGITIMES

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