WSJ States the Obvious: Amazon, Cloud Crush Server Market

Here's a shocker (not): The Wall Street Journal says Amazon Web Services and the cloud are crushing traditional server sales. Will VARs finally get the message?

The VAR Guy

August 29, 2013

1 Min Read
WSJ States the Obvious: Amazon, Cloud Crush Server Market

How bad is the server market right now? Consider this: Even The Wall Street Journal is now stating the obvious: Amazon Web Services and other cloud services providers are crushing traditional server market sales. For VARs and MSPs that re-sell server hardware or remotely monitor servers, this is the latest, loudest wakeup call: Start monetizing cloud services.

The Wall Street Journal quotes a range of stats, noting that IBM and HP saw painful x86 server sale declines in their most recent quarters. IDC and Gartner also point to slowing sales. But the news isn't all bad: Dell and Cisco Systems see their respective server sales rising, and IDC and Gartner also predict long-term growth for the market, The Journal noted.

What's The VAR Guy's view? Servers certainly won't die — especially installed-base servers that are humming along with no need to make big changes. But…

  • Microsoft killed Windows Small Business Server for a reason last year. The cloud is here.

  • IBM has been trying to potentially sell off its x86 server business. The cloud is here.

  • Most major ISVs are re-writing all of their applications for on-demand use. The cloud is here.

  • Venture capitalists are investing in next-generation resellers — called cloud brokers — like Cloud Sherpas. The cloud is here.

Amid all those reality checks, The VAR Guy wonders: Do the vast majority of resellers realize: The cloud is here.

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