The Enterprise Computing technology subsector, after peaking in 2015 (+5.6% over-year growth), will flatten out, stabilizing at +0.5% in 2016 with a +0.3% CAGR for 2015-18. The exceptional servers’ growth that caused the peak in 2015 is not expected to continue and by 2018 the market will expand by just USD +0.7bn. Key market dynamics shaping this sector remain cloud computing and hyper-scale servers.
Referring to segment dynamics, the servers segment is expected to drive growth while the storage market will slow down the subsector. Servers will exhibit a USD +2.6bn increment in revenues by 2018 (+1.5% CAGR). Hyper-scale data centers continue to be a key growth driver for this segment, although pausing in 1Q 2016. External storage will exhibit negative revenue growth, with USD -1.9bn revenue decline (-2.4% CAGR) to 2018. The switch towards cloud, integrated systems, and the adoption of all-flash arrays are key dynamics shaping the storage segment.