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:

Lorde gives $20,000 to feed hungry kids
Created by Rikkitic, last reply by Geektastic on 30-Jun-2016 22:10 (65 replies)
Pages... 3 4 5


Warmest May ever.....latest in a series of warmest months ever.
Created by Linuxluver, last reply by Geektastic on 30-Jun-2016 22:22 (23 replies)
Pages... 2


BREXIT - what comes next.
Created by PhantomNVD, last reply by eracode on 30-Jun-2016 20:38 (51 replies)
Pages... 2 3 4


Windows 10 Anniversary Update 2nd August 2016
Created by freitasm, last reply by antoniosk on 30-Jun-2016 16:45 (17 replies)
Pages... 2


Drone dangers: Should unlicensed operators be allowed to fly their drones in New Zealand Skies?
Created by frednz, last reply by frednz on 30-Jun-2016 22:18 (16 replies)
Pages... 2


Warehouse Stationary: Nexus 5X Black 32GB at $499!!
Created by Und3f, last reply by tripp on 30-Jun-2016 17:29 (16 replies)
Pages... 2


Bigpipe Product Owner
Created by DarkLord, last reply by BigPipeNZ on 30-Jun-2016 13:13 (33 replies)
Pages... 2 3


Broadband Compare tool
Created by freitasm, last reply by chevrolux on 30-Jun-2016 19:37 (14 replies)