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Mar 2017 - IDC Perspective - Doc # US42385916

Server Price Changes

By: Michael Menechella, Chris MurphyProgram Vice President, Sourcing Advisory Services, Teodora TafrovaSenior Research Analyst, Pricing Evaluation Services

Abstract

This IDC Perspective points out how IT buyers are reacting to the changing landscape in the server marketplace. Over the past several years, server prices have been steadily increasing. IDC explores how IT buyers are reacting to this phenomenon and how they are driving discipline and long-term price assurance.

"There has been a decent amount of churn in the x86 server market in the past couple of years, with Lenovo incorporating the xSeries and HP divesting its enterprise hardware group. While we have seen prices increase on a per-configuration basis, we have also seen vendors ramping up volume discounting." — Chris Murphy, vice president, IDC's Sourcing Advisory Service.

Teodora Tafrova, senior research analyst, IDC's Pricing Evaluation Services, stated the following when commenting on server price changes, "We have observed a constant and steady increase in server component pricing, contributing to an overall higher price point for x86 servers. The first quarter of 2017 observed a 25% price increase in server DRAM modules. Buyers will need to implement techniques to mitigate the effects of increasing server prices on their current contracts with suppliers."


Coverage

Subscriptions Covered

Sourcing Advisory Service (SAS): Database , Sourcing Advisory Service (SAS): Entry Package


Regions Covered

United States


Topics Covered

Enterprise server, Pricing and valuation, Technology buyer


Content


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