TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
TBR’s Computing Business QuarterlySM
Research Highlights and Outlook
Tech...
TBR
2 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Christian Perry, Sen...
TBR
3 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
• Data Center Landsc...
TBR
4 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Data Center Trends
D...
TBR
5 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Converged systems re...
TBR
6 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Vendors are adapting...
TBR
7 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
The influence of con...
TBR
8 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
The continued shift ...
TBR
9 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
• Intel is positioni...
TBR
10 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
HP and IBM struggle...
TBR
11 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
The proprietary ser...
TBR
12 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Proprietary server ...
TBR
13 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Vendors are acceler...
TBR
14 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Demand for storage ...
TBR
15 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Collaboration and i...
TBR
16 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Dell and Juniper wi...
TBR
17 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Server tiering is c...
TBR
18 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
For additional info...
TBR
19 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc.
Thank you, and see ...
TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
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Cutting Through the ‘Software-Defined’ Hype - Insights from TBR’s 1Q13 Data Center Benchmark

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Cutting Through the ‘Software-Defined’ Hype - Insights from TBR’s 1Q13 Data Center Benchmark

  1. 1. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C. TBR’s Computing Business QuarterlySM Research Highlights and Outlook Technology Business Research (TBR) Quarterly Webinar Series August 7, 2013
  2. 2. TBR 2 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Christian Perry, Senior Analyst Twitter: @ITwriter Email: christian.perry@tbri.com Computing Business Quarterly Research Highlights and 2013 Outlook: Webinar Presenters Krista Macomber, Analyst Twitter: @klmacomber Email: krista.macomber@tbri.com Coverage and focus areas: • Data center ecosystems • Servers: x86, proprietary (UNIX/mainframe), microservers • Storage: SAN, NAS, flash, object • Converged infrastructure/integrated systems • Private/hybrid cloud • High-performance computing
  3. 3. TBR 3 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. • Data Center Landscape Overview o Portfolio, GTM, partnership evolution • Data Center Benchmark o x86 and proprietary server markets are in flux o Business requirements for data management, analytics and IT efficiency will drive robust demand for storage o Networking leaders position their strategies around growing demand for software-defined networking solutions CBQ 1Q13 Research Highlights and Outlook: Agenda TBR Data Center Benchmark Vendors: Brocade Bull Cisco Dell EMC Fujitsu HDS HP Huawei IBM Juniper NEC NetApp Oracle Quantum Unisys
  4. 4. TBR 4 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Data Center Trends Data center software is now the tipping point for decision makers contemplating hardware purchases GRAPHIC SOURCE: TBR • Proprietary hardware • Stand-alone systems • Hardware performance • Hardware reliability/uptime • Unified management: software-managed, industry-standard hardware • Converged systems • Automation • Virtualization Established Influencers Emerging Influencers Customer requirements for IT simplicity are rendering software-based features heavier on the purchase influence scale
  5. 5. TBR 5 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Converged systems represent the next growth frontier in the data center space, positioning management software to unlock sales opportunities GRAPHIC SOURCE: TBR AND VENDORS Customers are buying converged systems… Applications Virtual Assets Physical Assets …to achieve an end-to-end unified environment Data Center Trends
  6. 6. TBR 6 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Vendors are adapting their partnership and selling models to compete in a software-led and converging data center hardware market GRAPHIC SOURCE: TBR AND 3CM MARKETING GROUP Networking Customer Value Data Center Trends Vendors are evolving their hardware and software portfolios and partnership strategies to capitalize on sales opportunities
  7. 7. TBR 7 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. The influence of convergence will pressure revenue and profit gains for data center vendors in 2013 CBQ 1Q13 Research Highlights and 2013 Outlook Data Center Vendor Trends for 2013 IMAGE SOURCE: PINCHINACONSULTING.COM IMAGE SOURCE: VG247.COM Overall, market trends are pressuring vendors adapting their portfolios and supply chains to convergence and “as a Service” delivery models. Trends toward a converged and hardware-agnostic IT environment will limit data center vendor revenue growth to a mid-single-digit rate during 2013. The market is consolidating, as vendors partner with former competitors and seek line of business divestitures to most effectively deliver upon customer requirements for integrated IT systems.
  8. 8. TBR 8 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. The continued shift to x86 hardware inhibits year-to-year data center revenue and gross margin gains CBQ 1Q13 Research Highlights and 2013 Outlook: The Data Center Landscape • Data center revenue, including servers, storage and networking, declined 16.4% year-to- year and 5.1% sequentially. All product segments fell sequentially, and networking was the only segment to increase revenue on a year-to-year basis, at 0.4%. • Data center gross margin of 43.8% was flat year-to-year but declined 200 basis points sequentially, driven by proprietary server challenges.
  9. 9. TBR 9 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. • Intel is positioning to weather changing server market dynamics, which will accelerate technology development and customer adoption of x86-based hyperscale servers. • This will facilitate loyalty of its key server vendor partners through generating new revenue opportunities. x86 server vendors are putting the pieces in place to respond to the growing hyperscale movement CBQ 1Q13 Research Highlights and 2013 Outlook: x86 Server x86 Server Vendor Trends for 2013 The disruption of traditional x86 server deployments by cloud deployments is opening new opportunities in the hyperscale space for vendors. Some vendors in the x86 server space are beginning to diverge between focusing on market share achieved through a scale-out approach and focusing on profitability through an end-to-end integrated scale-up approach. IMAGE SOURCE: TACTICALIP.COM, CLKER.COM, TBR IMAGE SOURCE: INTEL.COM IMAGE SOURCE: QPC-TOOLBOX.ORG
  10. 10. TBR 10 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. HP and IBM struggled to retain share, and Huawei, Cisco and Dell were outliers in achieving x86 server revenue and unit shipment growth in 2Q13 CBQ 1Q13 Research Highlights and 2013 Outlook: x86 Server Vendors are being forced to reassess how they adapt to the ongoing transition from proprietary servers to the x86 platform
  11. 11. TBR 11 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. The proprietary server market will continue to consolidate as Unisys shifts its mainframe portfolio onto Intel’s Xeon platform, and IBM and Oracle will go head to head in direct and indirect sales channels with a message of superior server performance and cost-effectiveness. Customers may prefer proprietary architectures to run mission-critical workloads, but vendors must work to convince customers of their value CBQ 1Q13 Research Highlights and 2013 Outlook: Proprietary Server Rising x86 architecture capabilities and customer requirements for IT flexibility and cost-effectiveness are dampening demand for proprietary servers. This heightens the value of competitive displacements for growth. IMAGE SOURCE: TBR AND SENSEONCENTS.COM Proprietary Server Vendor Trends for 2013 IMAGE SOURCE: TECHRADAR.COM As the value of proprietary servers diminishes in the eyes of customers, IBM and Oracle will be forced to battle more fiercely for UNIX server displacements in 2014. IMAGE SOURCE: KASUNPANORAMA.BLOGSPOT.COM
  12. 12. TBR 12 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Proprietary server revenue fell 10.8 percent year-to-year, but IBM, Oracle and Fujitsu plan to stabilize their revenue growth CBQ 1Q13 Research Highlights and 2013 Outlook: Proprietary Server Vendors will utilize workload-centric messaging to spark proprietary server demand by targeting customer requirements for high performance and reliability
  13. 13. TBR 13 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Vendors are accelerating maturity of the flash market by investing in hardware and software development, and tuck-in acquisitions, and educating customers on how to best new caching and other emerging capabilities. Customers’ desire to do more with less will drive storage vendors to compete around Hadoop, flash and management CBQ 1Q13 Research Highlights and 2013 Outlook: Storage Storage Vendor Trends for 2013 Enabling simplified support of heterogeneous environments will drive portfolio development and go-to-market approach for storage vendors in 2013 and 2014. IMAGE SOURCE: WHEELHOUSE ADVISORS.COM IMAGE SOURCE: SILICONANGLE.COM Big data growth and limited IT and developer resources, are driving demand for Hadoop. This market will become crowded from a vendor perspective in 2013. IMAGE SOURCE: BLACKBAUDKNOWHOW.COM
  14. 14. TBR 14 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Demand for storage will climb into the foreseeable future, but revenue growth will be hindered by pricing pressures and tight budgets CBQ 1Q13 Research Highlights and 2013 Outlook: Storage Software-defined storage, downward pricing pressures and tight large enterprise budgets will dampen storage profitability in 2013
  15. 15. TBR 15 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Collaboration and innovation of key vendors through the OpenDaylight project will help accelerate virtualized and software-defined networking solution adoption and the growth of a developer community for long-term innovation. Virtualization will enable the networking layer to keep pace with disaggregation of applications, servers and storage from hardware CBQ 1Q13 Research Highlights and 2013 Outlook: Data Center Networking Data Center Networking Trends for 2013 Networking vendors have plans in place to enable more software-defined features in their hardware. This final piece of the networking puzzle will help to accommodate converged IT infrastructures. New software and services opportunities are emerging. Vendors are investing in software-defined management, which will generate new revenue opportunities in the networking space. IMAGE SOURCE: ULTIMATESTATEPLANNER.COM IMAGE SOURCE: ADVOCATECONSULTING.COM IMAGE SOURCE: DREAMSTIME.COM
  16. 16. TBR 16 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Dell and Juniper will become larger contenders in the networking market as they leverage networking to drive efficiencies across the data center CBQ 1Q13 Research Highlights and 2013 Outlook: Data Center Networking Slower commoditization of switches and routers bodes well for stable networking profit performance compared to servers and storage
  17. 17. TBR 17 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Server tiering is changing the data center landscape Quarterly Topics Microservers are emerging to expand the hyperscale market IMAGE SOURCE: CUTCASTER.COM IMAGE SOURCE: COYOTECRK.COM CBQ 1Q13 Research Highlights and Outlook: Next Quarter Syndicated Topics Data center ecosystems are morphing into workload-defined shapes that ultimately dictate customer purchase and deployment decisions IMAGE SOURCE: THEREGISTER.CO.UK Workloads are increasingly driving customer decisions
  18. 18. TBR 18 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. For additional information, please contact: John Spooner James McIlroy Director, Computing Practice Vice President of Sales john.spooner@tbri.com mcilroy@tbri.com Technology Business Research, Inc. Hampton, N.H. Twitter: @TBRInc SlideShare: www.slideshare.net/tbr_market_insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research CBQ 1Q13 Research Highlights and Outlook: Q & A Questions? Christian Perry Senior Analyst — Data Centers, Computing Practice Twitter: @ITwriter Email: christian.perry@tbri.com Krista Macomber Analyst — Data Centers, Computing Practice Twitter: @klmacomber Email: krista.macomber@tbri.com
  19. 19. TBR 19 TBR Quarterly Webinar Series | 8.7.13 | www.tbri.com | ©2013 Technology Business Research, Inc. Thank you, and see you next quarter! www.tbri.com @TBRinc
  20. 20. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C. About TBR Technology Business Research (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today. Contact Us 1.603.929.1166 info@tbri.com www.tbri.com 11 Merrill Drive Hampton, NH 03842 USA This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.
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