IT managers are increasingly replacing servers with SaaS.
Cloud providers take on a bigger share of the servers as overall market starts declining.
In three years, 2017, nearly 45% of all the servers leaving manufacturers will be bought by cloud providers.
“What that means is a lot of people are buying SaaS,” said Frank Gens, referring to software-as-a-service. “A lot of capacity if shifting out of the enterprise into cloud service providers.”
The increased use of SaaS is a major reason for the market shift, but so is virtualization to increase server capacity. Data center consolidations are eliminating servers as well, along with the purchase of denser servers capable of handling larger loads.