Join us in Wellington 4th December and Auckland 27th November
Want to help us test an ads-free Geekzone? Register for webpass now

Geekzone: technology news, blogs, forums
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:

A 17 second violation of airspace? Is Turkey nuts?
Created by DaveB, last reply by Stan on 26-Nov-2015 01:43 (44 replies)
Pages... 2 3

Has Trade Me had its day?
Created by Rikkitic, last reply by DarthKermit on 25-Nov-2015 18:27 (86 replies)
Pages... 4 5 6

Huawei and 2degrees Nexus 6P 64/128 GB offer for Geekzone users
Created by freitasm, last reply by Sheagae on 25-Nov-2015 15:46 (645 replies)
Pages... 41 42 43

Chorus not knowing where their wires go.
Created by jpoc, last reply by MikeAqua on 25-Nov-2015 12:40 (15 replies)

Google Nexus 6P Owners Discussion
Created by Finch, last reply by networkn on 26-Nov-2015 02:44 (312 replies)
Pages... 19 20 21

iPhone 6S 64GB Dead Pixel
Created by TimA, last reply by tardtasticx on 25-Nov-2015 23:16 (12 replies)

Item missing in the mail, vendor sends an extra invoice.
Created by michael001, last reply by keewee01 on 25-Nov-2015 12:51 (25 replies)
Pages... 2

DSE 'Click and Collect'
Created by amiga500, last reply by amiga500 on 24-Nov-2015 20:22 (11 replies)