Public cloud services still bolstered hardware shipments in 2016 and 2017. As IT infrastructure can now be deemed as services, enterprises have been given more options when it comes to selecting networking solutions. Facing the rise in demand and limited budgets, enterprises have been more inclined to adopt public cloud services. Hence, the growth of server brands which used to sell through traditional markets and distribution channels is much slower than large-scale ISPs (Internet Service Providers) over the years. This report analyzes the current status and future development of the worldwide and Taiwanese server industries while looking into key issues facing the industry.