Computing - Server
Rising Force: x86 Server Development in 2007
March 23, 2007 / Bryan Lee
7 Page, Radar

Abstract

Since 2006 x86 server shipments have gradually increased due to improved performance and cheap prices, while RISC server shipment has been on the decline. As leading vendors such as HP and Sun continue to increase x86 server shipments, it is expected that the x86 server market will grow further in 2007. The launch of new server technologies and applications in 2007, including multi-core processors and related software, and home multimedia servers, will give new impetus to the server market. This report will analyze the development trends of the x86 server market in 2007.

The x86 Server Market to See Stable Growth

As x86 servers gradually develop toward multi-core structure and continue to nibble at the RISC market, market share of UNIX operating systems, which is primarily used with RISC servers, has slipped as well.

Since Sun announced its intention to use Intel chip in January 2007, it has joined Dell, HP, and IBM as companies selling both Intel and AMD-based servers. Dell, which originally used only Intel's ICs, announced in 2006 that it would be using AMD chips as well. In the future consumers will be able to purchase servers using either Intel or AMD x86 microprocessors from major vendors. Since Sun announced that its Solaris operating system, which initially ran only on RISC servers, would support Intel and AMD x86 architecture, x86 server manufacturers have been planning to snatch Sun's share of the server market.

The x86 server market is expected to see stable growth in 2007, due mainly to leading vendors' success in the value-line and mid-range segments. This is projected to indirectly benefit Taiwanese server OEMs as well.

Dual-core x86 Servers to Remain Dominant in 2007

Although manufacturers have been transiting from single-core to dual-core platforms, and dual-core has gradually become the norm, some vendors are still providing single-core models to meet special customer demand.

With the availability of dual-core and quad-core technologies, it is clear that servers are moving toward multi-core structure. Future development f the server market will hinge on consumers' acceptance of Intel's Woodcrest, Clovertown, and Kentsfield CPUs and the performance of AMD's neweneration Opteron processors. As competition between Intel and AMD over quad-core CPUs intensifies, IC suppliers and server vendors will lower prices on single- and dual-core products, which will further impact consumers' purchasing decisions.

The x86 server market will still be dominated by dual-core models in 2007. It is thus important for vendors to find an appropriate market positioning for quad-core servers when making market strategies and seeking market segmentation.

Home Servers Pave Way for Next-generation Home Multimedia Technology

Multi-core servers not only boast higher performance but also allow for multi-tasking processing, which in turn enable users to create, enjoy and share digital media content. They are able to process high definition video content and to simultaneously run multiple applications requiring powerful computing capabilities, while acting as powerful multimedia centers. Multiore servers can process multiple streaming tasks, thereby providing multimedia experience superior to that offered by older servers.

As evidenced by the functionality of Microsoft's Windows Home Server, AMD's home multimedia server, and HP's Media Smart server, vendors are trying to meet consumers' demand for sharing multimedia content through the Internet such as YouTube and MySpace, while paving the way for the digital home, server, and central storage product and solution markets.

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