IDC expects that anywhere from a quarter to a third of the servers shipped next year will be delivered to cloud services providers. This means that in three years, 2017, nearly 45 per cent of all the servers leaving manufacturers will be bought by cloud providers.
The increased use of SaaS is a major reason for the market shift, but so is virtualization to increase server capacity. Data centre consolidations are eliminating servers as well, along with the purchase of denser servers capable of handling larger loads, IDC claims.