Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

Is the enterprise hardware business doomed?
Posted on 21-Feb-2014 09:59 by Bill Bennett. | Tags Filed under: News.



Enterprise hardware has never been a tougher sell. Recent financial reports from the giant companies that once dominated enterprise computing, IBM, Oracle, HP among others, do not make for pretty reading.

While there is still a demand for mainframe scale hardware in some niches, the overall picture is grim. Sales  continue to spiral down.

Amazon’s cloud onslaught puts every enterprise hardware company under pressure. And make no mistake, Amazon is the only brand that really matters in this context – the company dominates the market.

Old-school enterprise companies see a glimmer of hope in following an Amazon-style cloud path. It’s not that attractive. In effect it means dropping a dying business with uncertain margins, for a growing business with lower, but equally uncertain margins.

Amazon is so strong, it leaves little room for these companies to move from shifting kit to selling their own cloud services.  Its practice on continually ratcheting down prices as it squeezes out greater efficiencies should also sound alarm bells.

There is no upside. Servers are a commodity. If you think the big hardware brands and re-orientate to selling commodity servers based on Intel chips, think again, that market is already dominated by unbranded hardware. Many datacentre companies build their own servers from scratch.

Enterprise customers still need software and support services. Both still attract respectable margins, but selling big iron? Forget it.

[digitl 2014]

digitl on Google+

The post Is the enterprise hardware business doomed? appeared first on digitl.



comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

How good is your general Science Knowledge?
Created by Aredwood, last reply by joker97 on 31-Oct-2014 23:44 (39 replies)
Pages... 2 3


Government Limos
Created by networkn, last reply by Bung on 31-Oct-2014 12:39 (94 replies)
Pages... 5 6 7


Snap refuses to replace faulty gear
Created by Brendan, last reply by MadEngineer on 28-Oct-2014 19:07 (92 replies)
Pages... 5 6 7


Sky will be 'upgrading software' of My Sky to connect to internet. What does that mean?
Created by Geektastic, last reply by NonprayingMantis on 31-Oct-2014 23:55 (27 replies)
Pages... 2


Shutup and take my money (via NFC on my mobile phone)
Created by sxz, last reply by sonyxperiageek on 31-Oct-2014 22:34 (24 replies)
Pages... 2


Speed limit when overtaking? Teach me please.
Created by nakedmolerat, last reply by joker97 on 28-Oct-2014 17:13 (123 replies)
Pages... 7 8 9


Uber: a cheaper taxi ride?
Created by kingdragonfly, last reply by livisun on 31-Oct-2014 14:47 (34 replies)
Pages... 2 3


OneDrive code giveaway - go!
Created by freitasm, last reply by pgsheng on 1-Nov-2014 01:50 (33 replies)
Pages... 2 3