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:

Netflix officialy launching in NZ in March
Created by jarj, last reply by tdgeek on 21-Nov-2014 19:08 (97 replies)
Pages... 5 6 7


Gull Employment Dispute.
Created by networkn, last reply by richms on 23-Nov-2014 23:05 (71 replies)
Pages... 3 4 5


Which one is right for me? M8, Z3, S5 or other?
Created by makiomoto, last reply by makiomoto on 20-Nov-2014 13:52 (40 replies)
Pages... 2 3


Free 1gb data with $19 combo until end of Jan 2015 (1.5gb total)
Created by eXDee, last reply by Shoes2468 on 23-Nov-2014 23:01 (16 replies)
Pages... 2


Slingshot line speed
Created by Frankiej45, last reply by Frankiej45 on 20-Nov-2014 14:38 (14 replies)

Little Wins labour Leadership
Created by MikeAqua, last reply by Aredwood on 21-Nov-2014 18:47 (53 replies)
Pages... 2 3 4


Orcon: Why did you cancel my email account without telling me??
Created by old3eyes, last reply by old3eyes on 21-Nov-2014 17:03 (13 replies)

My connection is too fast
Created by ckc, last reply by Geektastic on 20-Nov-2014 11:30 (25 replies)
Pages... 2