Hyperscalers shopped for at least 540,000 extra servers, additional 75 exabytes of storage in Q2

Revenue dips regardless as big enterprise players struggle during lockdown

Hyperscalers went on a buying spree in 2020's second quarter.

The new figures, provided by IDC, cover the period between April and June 2020, during which a hefty portion of the world's population were working and socialising from home during lockdowns.

In total, the quarter saw 3.2 million servers shipped, almost 20 per cent more than the same period last year, but less than the industry's record-breaking 3.3m units in the first quarter.

Vendors that IDC rates as "ODM Direct" - the likes of Qanta that sell direct to clouds - saw unit sales increase 61.5 per cent to 1.1 m units, up . Inspur, the Chinese company that which makes gear for cloud operators, shipped 353,329 units, up 52.7 per cent year-on-year.

Between ODMs and Inspur alone, shipments likely to be headed for the clouds jumped by 540,000 units. By comparison, shipments from most traditional vendors grew in single figures, with Dell shipments down 10 percent.

Dell still scored 14 percent of all revenue, a point behind HPE's share of the $24 billion spent on servers in the quarter. Inspur took 10.5 per cent thanks to 77 per cent year-on-year growth, and Lenovo and IBM both captured about six per cent.

But the real winner of the period was white-box makers, which raked about a third of all revenue across the quarter, or as much as HPE and Dell combined.

"We certainly see areas of reduced spending, but this was offset by investment made by large cloud builders and enterprises targeting solutions that support shifting infrastructure needs caused by the global pandemic," surmised Paul Maguranis, a senior research analyst at IDC.

In similar results for the storage sector, IDC said that total capacity shipments grew roughly 60 per cent year-on-year to 124.6 exabytes. Again, hyperscalers made up the bulk of this figures, shipping 74.8 exabytes in the quarter and scoring 122 per cent growth year-on-year.

Dell, HPE and NetApp were IDC's top three vendors by revenue, but all went backwards in terms of revenue. IBM defied that trend to post 12.6 per cent revenue growth.

China grew the fastest of any region during the quarter, up 18.3 per cent year-over-year, which may explain why Huawei achieved 47.6 per cent revenue growth for the quarter.

IDC said Canada was the only other region to generate growth during the quarter, and even that was an anaemic 1.1 per cent. Revenue fell everywhere else. Japan dipped 4.7 points, EMEA fell 7.8 and the USA crashed by 8.7 per cent. Things were worse in Asia/Pacific where sales slipped by 14.7 per cent, a slightly better result than Latin America's 18.7 per cent slide. ®

Other stories you might like

  • Experts: AI should be recognized as inventors in patent law
    Plus: Police release deepfake of murdered teen in cold case, and more

    In-brief Governments around the world should pass intellectual property laws that grant rights to AI systems, two academics at the University of New South Wales in Australia argued.

    Alexandra George, and Toby Walsh, professors of law and AI, respectively, believe failing to recognize machines as inventors could have long-lasting impacts on economies and societies. 

    "If courts and governments decide that AI-made inventions cannot be patented, the implications could be huge," they wrote in a comment article published in Nature. "Funders and businesses would be less incentivized to pursue useful research using AI inventors when a return on their investment could be limited. Society could miss out on the development of worthwhile and life-saving inventions."

    Continue reading
  • Declassified and released: More secret files on US govt's emergency doomsday powers
    Nuke incoming? Quick break out the plans for rationing, censorship, property seizures, and more

    More papers describing the orders and messages the US President can issue in the event of apocalyptic crises, such as a devastating nuclear attack, have been declassified and released for all to see.

    These government files are part of a larger collection of records that discuss the nature, reach, and use of secret Presidential Emergency Action Documents: these are executive orders, announcements, and statements to Congress that are all ready to sign and send out as soon as a doomsday scenario occurs. PEADs are supposed to give America's commander-in-chief immediate extraordinary powers to overcome extraordinary events.

    PEADs have never been declassified or revealed before. They remain hush-hush, and their exact details are not publicly known.

    Continue reading
  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading

Biting the hand that feeds IT © 1998–2022