Cloud Servers in the Datacenter: The Evolution of Density-Optimized

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1 Cloud Servers in the Datacenter: The Evolution of Density-Optimized Jean S. Bozman Research Vice President IDC Enterprise Platforms Group October 24, 2013 Copyright 2010 IDC. Reproduction is forbidden unless authorized. All rights reserved.

2 Agenda Market Drivers for Change Density-Optimized Servers Readiness for Adoption

3 The Third Platform for Industry Growth Trillions of Things Billions of Users Social Big Data/ Business Analytics Mobile Mobile Broadband Devices & Apps 2011 Cloud Services Millions of Apps Hundreds of Millions of Users LAN/ Client- Internet Server PC 1986 Tens of Thousands of Apps Millions of Users Thousands of Apps

4 Phases Leading to Cloud: Evolution to the Third Platform

5 WW Devices Communicating At Any Given Time (2012) excluding enterprise datacenters Mobile Devices (4.2B) Computers (1.9B) Entertainment (1.3B) Home Networking (1.0B) Toys/Appliances (0.8B) VoIP (0.7B) Industrial/Auto (0.2B) Over 10 billion devices connected and sending/requesting data

6 Worldwide Growth of Cloud Services, ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Software as a Service (SaaS) Platform as a Service (PaaS) WW Virtual Server IB Infrastructure as a Service (IaaS) Total Cloud Services WW Server IB Revenue in $M (USD) WW Server Shipments Source: IDC Cloud Black Book, 2012

7 Agenda Density-Optimized Servers

8 Breaking Down Barriers in the Datacenter More, and Broader, Access to More Data Impact Across Geos Expanding the Global Audience Extending the Walls of the Enterprise Building compliance with governmental regulations into the solution, while isolating workloads in a virtualized server, multi-tenant cloud environment End-to-end solutions (mobile phone to CSP) will require redesign of the software environment Business Goals: Better end-user productivity, more efficient processing of applications, databases

9 Density and Fabrics Shrink the System Server Density is Increasing Systems on a Chip (SOCs): Less cabling, fewer components Server Processors as Neighbors to Local Storage Leveraging Low-Power Processors (e.g., ARM, Intel Atom) Fabric Is a Key Component of Dense Systems Fabrics Bring More Switches Inside the Machine Downsizing the System Board for High Performance Smaller Distances Between Components

10 Density-Optimized Form Factors Density optimized servers are designed for large-scale datacenter environments where parallelized workloads are prevalent. The form factor serves the unique needs of these datacenters with streamlined system designs that focus on performance, energy efficiency, and density. These systems are typically deployed in fully assembled rack configurations; use case examples include ecommerce, cloud computing, online game hosting, social networking sites, dedicated hosting, Hadoop, and HPC (high performance computing). IDC Worldwide and Regional Server Forecast Update IDC Document # , November, 2012

11 Processor/Memory Ratio Processors with more on-chip memory Caches getting larger, for large data transfers, In- Memory Database Across-the-board trend among server processors Intel Xeon, Intel Itanium Next-generation AMD processors IBM POWER 7, POWER 7+, POWER8 SPARC T4, SPARC T5, SPARC M5 and SPARC M6

12 Agenda Readiness for Adoption

13 Server Installed Base: The Evolution From Physical to Virtual 100,000,000 Server s CAGR 75,000,000 50,000,000 WW Virtual Server IB 31.5% 25,000,000 WW Server IB 0.6% 0 WW Server Shipments '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Virtualization Leaves its Mark and Primes the Market for Change 6.5%

14 Percent of Respondents When Are Customers Ready for Virtualization and Cloud? Q. Approximately what percent of your entire application portfolio is virtualized today? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 25% Percent Applications Virtualized Source: IDC Server Virtualization MCS, Winter

15 Cloud IT Maturity Map IaaS PaaS Hybrid Cloud PHASE 1 Integration of HW systems with Management and virtualization SW into SKU based modules PHASE 2 Integration of middleware, database and ADD tools into SKU based modules PHASE 3 Integration of external cloud services into the modularized offering Converged Systems Integrated System Cloud Systems

16 IDC Server Market Forecast, Unit Shipments By Form Factor, ,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 WW Virtual Server IB WW Server IB WW Server Shipments Density Blade Tower Rack Total Source: IDC Server Market Forecast,

17 Key Takeaways In cloud servers, it s a start-over environment, with cloud-specific requirements. Stay close to the customers. It s worth it. New Requirements from Cloud Service Providers Keep Emerging. Monitor their latest deployments for technical changes and evolving server design. Understand what the ODMs are trying to do. If you re a systems vendor, you may want to take the same approach. If you re a large enterprise, you have a choice: build, buy, or collaborate with partners.

18 Rate of Biz Change Stages of Datacenter Transformation Lower OPEX Metering & Chargeback Converge Simplify Administration Orchestrate Resource Balancing Consolidate Virtualize Mobility Automate Self- Service Lifecycle Management Lower CAPEX Source: IDC, 2013 Rate of Virtualization 18

19 Questions? address:

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