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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
TBR’s Computing Business QuarterlySM Research Highlights and Outlook Technology Business Research (TBR) Quarterly Webinar Series
August 7, 2013
TBR
2 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Christian Perry, Senior Analyst
Twitter: @ITwriter
Email: [email protected]
Computing Business Quarterly Research Highlights and 2013 Outlook: Webinar Presenters
Krista Macomber, Analyst
Twitter: @klmacomber Email: [email protected]
Coverage and focus areas: • Data center ecosystems • Servers: x86, proprietary (UNIX/mainframe),
microservers • Storage: SAN, NAS, flash, object • Converged infrastructure/integrated
systems • Private/hybrid cloud • High-performance computing
TBR
3 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
• Data Center Landscape Overview
o Portfolio, GTM, partnership evolution
• Data Center Benchmark
o x86 and proprietary server markets are
in flux
o Business requirements for data
management, analytics and IT efficiency
will drive robust demand for storage
o Networking leaders position their
strategies around growing demand for
software-defined networking solutions
CBQ 1Q13 Research Highlights and Outlook: Agenda
TBR Data Center
Benchmark
Vendors:
Brocade
Bull
Cisco
Dell
EMC
Fujitsu
HDS
HP
Huawei
IBM
Juniper
NEC
NetApp
Oracle
Quantum
Unisys
TBR
4 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Data Center Trends
Data center software is now the tipping point for decision makers contemplating hardware purchases
GRAPHIC SOURCE: TBR
• Proprietary hardware
• Stand-alone systems
• Hardware performance
• Hardware reliability/uptime
• Unified management:
software-managed,
industry-standard hardware
• Converged systems
• Automation
• Virtualization
Established Influencers
Emerging Influencers
Customer requirements for IT simplicity are rendering software-based features heavier on the
purchase influence scale
TBR
5 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Converged systems represent the next growth frontier in the data center space, positioning management software to unlock sales opportunities
GRAPHIC SOURCE: TBR AND VENDORS
Customers are buying converged systems…
Applications
Virtual
Assets
Physical
Assets
…to achieve an end-to-end unified environment
Data Center Trends
TBR
6 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Vendors are adapting their partnership and selling models to compete in a software-led and converging data center hardware market
GRAPHIC SOURCE: TBR AND 3CM MARKETING GROUP
Networking
Customer Value
Data Center Trends
Vendors are evolving their hardware and software portfolios and partnership strategies to capitalize on sales opportunities
TBR
7 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
The influence of convergence will pressure revenue and profit gains for data center vendors in 2013
CBQ 1Q13 Research Highlights and 2013 Outlook
Data Center Vendor Trends for 2013
IMAGE SOURCE: PINCHINACONSULTING.COM
IMAGE SOURCE: VG247.COM
Overall, market trends are pressuring vendors
adapting their portfolios and supply chains to
convergence and “as a Service” delivery models.
Trends toward a converged and hardware-agnostic IT
environment will limit data center vendor revenue
growth to a mid-single-digit rate during 2013.
The market is consolidating, as vendors partner with
former competitors and seek line of business
divestitures to most effectively deliver upon
customer requirements for integrated IT systems.
TBR
8 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
The continued shift to x86 hardware inhibits year-to-year data center revenue and gross margin gains
CBQ 1Q13 Research Highlights and 2013 Outlook: The Data Center Landscape
• Data center revenue, including servers, storage and networking, declined 16.4% year-to-
year and 5.1% sequentially. All product segments fell sequentially, and networking was the
only segment to increase revenue on a year-to-year basis, at 0.4%.
• Data center gross margin of 43.8% was flat year-to-year but declined 200 basis points
sequentially, driven by proprietary server challenges.
TBR
9 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
• Intel is positioning to weather changing server market
dynamics, which will accelerate technology development
and customer adoption of x86-based hyperscale servers.
• This will facilitate loyalty of its key server vendor
partners through generating new revenue opportunities.
x86 server vendors are putting the pieces in place to respond to the growing hyperscale movement
CBQ 1Q13 Research Highlights and 2013 Outlook: x86 Server
x86 Server Vendor Trends for 2013
The disruption of traditional x86 server deployments by
cloud deployments is opening new opportunities in the
hyperscale space for vendors.
Some vendors in the x86 server space are beginning to
diverge between focusing on market share achieved through
a scale-out approach and focusing on profitability through
an end-to-end integrated scale-up approach. IMAGE SOURCE: TACTICALIP.COM, CLKER.COM, TBR
IMAGE SOURCE: INTEL.COM
IMAGE SOURCE: QPC-TOOLBOX.ORG
TBR
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HP and IBM struggled to retain share, and Huawei, Cisco and Dell were outliers in achieving x86 server revenue and unit shipment growth in 2Q13
CBQ 1Q13 Research Highlights and 2013 Outlook: x86 Server
Vendors are being forced to reassess how they adapt to the ongoing transition from proprietary servers to the x86 platform
TBR
11 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
The proprietary server market will continue to consolidate as
Unisys shifts its mainframe portfolio onto Intel’s Xeon
platform, and IBM and Oracle will go head to head in direct
and indirect sales channels with a message of superior
server performance and cost-effectiveness.
Customers may prefer proprietary architectures to run mission-critical workloads, but vendors must work to convince customers of their value
CBQ 1Q13 Research Highlights and 2013 Outlook: Proprietary Server
Rising x86 architecture capabilities and customer
requirements for IT flexibility and cost-effectiveness are
dampening demand for proprietary servers. This heightens
the value of competitive displacements for growth. IMAGE SOURCE: TBR AND SENSEONCENTS.COM
Proprietary Server Vendor Trends for 2013
IMAGE SOURCE: TECHRADAR.COM
As the value of proprietary servers diminishes in the eyes of
customers, IBM and Oracle will be forced to battle more
fiercely for UNIX server displacements in 2014.
IMAGE SOURCE: KASUNPANORAMA.BLOGSPOT.COM
TBR
12 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Proprietary server revenue fell 10.8 percent year-to-year, but IBM, Oracle and Fujitsu plan to stabilize their revenue growth
CBQ 1Q13 Research Highlights and 2013 Outlook: Proprietary Server
Vendors will utilize workload-centric messaging to spark proprietary server demand by targeting customer requirements for high performance and reliability
TBR
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Vendors are accelerating maturity of the flash market by investing
in hardware and software development, and tuck-in acquisitions,
and educating customers on how to best new caching and other
emerging capabilities.
Customers’ desire to do more with less will drive storage vendors to compete around Hadoop, flash and management
CBQ 1Q13 Research Highlights and 2013 Outlook: Storage
Storage Vendor Trends for 2013
Enabling simplified support of heterogeneous environments will
drive portfolio development and go-to-market approach for
storage vendors in 2013 and 2014.
IMAGE SOURCE: WHEELHOUSE ADVISORS.COM
IMAGE SOURCE: SILICONANGLE.COM
Big data growth and limited IT and developer resources, are
driving demand for Hadoop. This market will become crowded
from a vendor perspective in 2013.
IMAGE SOURCE: BLACKBAUDKNOWHOW.COM
TBR
14 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Demand for storage will climb into the foreseeable future, but revenue growth will be hindered by pricing pressures and tight budgets
CBQ 1Q13 Research Highlights and 2013 Outlook: Storage
Software-defined storage, downward pricing pressures and tight large enterprise budgets will dampen storage profitability in 2013
TBR
15 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Collaboration and innovation of key vendors through the
OpenDaylight project will help accelerate virtualized and
software-defined networking solution adoption and the
growth of a developer community for long-term innovation.
Virtualization will enable the networking layer to keep pace with disaggregation of applications, servers and storage from hardware
CBQ 1Q13 Research Highlights and 2013 Outlook: Data Center Networking
Data Center Networking Trends for 2013
Networking vendors have plans in place to enable more
software-defined features in their hardware. This final piece
of the networking puzzle will help to accommodate
converged IT infrastructures.
New software and services opportunities are emerging.
Vendors are investing in software-defined management,
which will generate new revenue opportunities in the
networking space. IMAGE SOURCE: ULTIMATESTATEPLANNER.COM
IMAGE SOURCE: ADVOCATECONSULTING.COM
IMAGE SOURCE: DREAMSTIME.COM
TBR
16 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Dell and Juniper will become larger contenders in the networking market as they leverage networking to drive efficiencies across the data center
CBQ 1Q13 Research Highlights and 2013 Outlook: Data Center Networking
Slower commoditization of switches and routers bodes well for stable networking profit performance compared to servers and storage
TBR
17 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Server tiering is changing the data center landscape
Quarterly Topics
Microservers are emerging to expand the hyperscale market
IMAGE SOURCE: CUTCASTER.COM
IMAGE SOURCE: COYOTECRK.COM
CBQ 1Q13 Research Highlights and Outlook: Next Quarter Syndicated Topics
Data center ecosystems are morphing into workload-defined shapes that ultimately dictate customer purchase and deployment decisions
IMAGE SOURCE: THEREGISTER.CO.UK
Workloads are increasingly driving customer decisions
TBR
18 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
For additional information, please contact: John Spooner James McIlroy Director, Computing Practice Vice President of Sales [email protected] [email protected]
Technology Business Research, Inc.
Hampton, N.H.
Twitter: @TBRInc
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YouTube: www.youtube.com/user/TBRIChannel
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CBQ 1Q13 Research Highlights and Outlook: Q & A
Questions?
Christian Perry Senior Analyst — Data Centers, Computing Practice
Twitter: @ITwriter
Email: [email protected]
Krista Macomber Analyst — Data Centers, Computing Practice
Twitter: @klmacomber
Email: [email protected]
TBR
19 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Thank you, and see you next quarter!
www.tbri.com
@TBRinc
TBR
T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
About TBR Technology Business Research (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.
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