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IDC Forecasts Worldwide Appliance Server Market Will Surge Past $11B In 2004.

Targeting right appliance to right markets is the key to success in a fast-growing appliance server market. For server vendors, appliance servers are too hot not to touch. IDC estimates this quickly emerging market will develop into a $11 billion-plus opportunity worldwide by 2004 - this from a market that was significantly under $2 billion in 1999.

Appliance servers will be quickly adopted by both enterprises and small businesses, but for different reasons. "Today's service providers and dot-coms are demanding reliable and scalable solutions to provide dedicated functions for their organizations. Alternatively, many small offices and businesses are looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 inexpensive, reliable ways to build a network and to get their business connected to the Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
," says Mark Melenovsky, research manager with IDC's Worldwide Commercial Systems and Servers research program. "IDC believes that appliance servers will find growing acceptance as solutions in both of these market segments."

This growth, however, will not come without a cost. According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 IDC, portions of the appliance market will be highly cannibalistic can·ni·bal  
n.
1. A person who eats the flesh of other humans.

2. An animal that feeds on others of its own kind.



[From Spanish Caníbalis,
 of the traditional space - that is, appliance servers will take away market share from general-purpose servers. Moreover, general-purpose server vendors are expected to customize pieces of their traditional server offering, turning these machines into appliance servers as well - further fueling the cannibalistic characteristics this market will demonstrate. IDC sees 2000 as a pivotal year for appliance servers.

"We expect major server vendors will enter the appliance market this year, and some serious changes in the marketplace will occur," says John Humphreys John Humphreys may refer to:
  • John Humphreys (accountant), an accountants firm in Dover, England.
  • Jonathan Humphreys, a Welsh rugby player.
  • John Humphreys (economist), an Australian economist and libertarian.
  • John Humphreys (politician), a Texas politician.
, an analyst in IDC's Worldwide Commercial Systems and Servers research program.

IDC believes this emerging market will become more diverse and that high-growth areas will focus on specific applications and specific end-user segments. "Vendors should carefully assess the opportunities and threats appliance servers bring to their businesses before addressing this space," Melenovsky warned.

According to IDC, network attached storage will represent the largest opportunity for appliance servers, accounting for more than half the market's value through 2004. Revenues in the Web server segment, however, will increase the fastest. The compound annual growth rate (CAGR CAGR

See: Compound Annual Growth Rate
) in this segment will be more than 130 percent, compared with a 73 percent CAGR for the overall market.

"Appliance servers will not only occupy a prominent position in the server market, they will also drive specialization A career option pursued by some attorneys that entails the acquisition of detailed knowledge of, and proficiency in, a particular area of law.

As the law in the United States becomes increasingly complex and covers a greater number of subjects, more and more attorneys are
 at the low end, bringing some of the reliability, accessibility, and scalability features of midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually  servers to the small business segment," says Vernon Turner, vice president of IDC's Worldwide Commercial Systems and Servers research program.
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Title Annotation:Industry Trend or Event
Comment:IDC Forecasts Worldwide Appliance Server Market Will Surge Past $11B In 2004.(Industry Trend or Event)
Publication:EDP Weekly's IT Monitor
Geographic Code:00WOR
Date:Mar 27, 2000
Words:414
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