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Did you notice the change?
Last quarter we reached the inflection point where computing’s nature fundamentally changed. I'm talking about the cloud. The agility and ease of consumption of cloud computing has enabled many use cases that weren't even considered in the past because of the difficulty, time, and expense involved in provisioning the computing resources. Now this growth is driving server shipments.
In the opinion of acknowledged cloud thought leader Bernard Golden in CIO, "we are on the cusp of an enormous transformation as computing resource provisioning transitions from expensive and complex to cheap and low-friction."
Golden discusses the Jevons Paradox which focuses on what happens when a good or service becomes less expensive to use. Jevons realized that when you use less coal for a given amount of work, you’ll do more work and use more coal. Golden applies this to computing, noting that spending on computing had steadily risen despite Moore's law, but recently most server companies have seen flat revenues because shipments failed to increase enough to offset the lower cost of processing. In other words, enterprises haven’t been installing enough servers to grow the market.
Until last quarter, that is. Server revenues were up over 18 percent, year-over-year, with particularly strong growth in servers used by large Web properties and cloud computing providers. "Users are flocking to cloud computing due to its lower cost, compared to previous computing options."
According to Golden, this trend will likely lead to: growth of server and component shipments way beyond what we’ve seen in the past; massive, massive data center construction by the biggest providers; innovation and disruption across all aspects of our society and economy; and incredible pressure within IT organizations to change their natures and operations.
The industrial sector will not be immune to these transformational changes in computing. Staid industrial companies will adapt to the emerging environment, and they will use their considerable influence to ensure that their security requirements and other needs will be met along the way on the journey to the cloud. But they will also be delighted to discover more and more really compelling use cases that they never even considered!
Last quarter we reached the inflection point where computing’s nature fundamentally changed. I'm talking about the cloud. The agility and ease of consumption of cloud computing has enabled many use cases that weren't even considered in the past because of the difficulty, time, and expense involved in provisioning the computing resources. Now this growth is driving server shipments.
In the opinion of acknowledged cloud thought leader Bernard Golden in CIO, "we are on the cusp of an enormous transformation as computing resource provisioning transitions from expensive and complex to cheap and low-friction."
Golden discusses the Jevons Paradox which focuses on what happens when a good or service becomes less expensive to use. Jevons realized that when you use less coal for a given amount of work, you’ll do more work and use more coal. Golden applies this to computing, noting that spending on computing had steadily risen despite Moore's law, but recently most server companies have seen flat revenues because shipments failed to increase enough to offset the lower cost of processing. In other words, enterprises haven’t been installing enough servers to grow the market.
Until last quarter, that is. Server revenues were up over 18 percent, year-over-year, with particularly strong growth in servers used by large Web properties and cloud computing providers. "Users are flocking to cloud computing due to its lower cost, compared to previous computing options."
According to Golden, this trend will likely lead to: growth of server and component shipments way beyond what we’ve seen in the past; massive, massive data center construction by the biggest providers; innovation and disruption across all aspects of our society and economy; and incredible pressure within IT organizations to change their natures and operations.
The industrial sector will not be immune to these transformational changes in computing. Staid industrial companies will adapt to the emerging environment, and they will use their considerable influence to ensure that their security requirements and other needs will be met along the way on the journey to the cloud. But they will also be delighted to discover more and more really compelling use cases that they never even considered!