Micro servers major on low power consumption and have small footprints, and use multiple mobile processors. The main market will be small to medium sized businesses and applications use light duty web serving, can be used for dedicated hosting, cloud computing and analytics.
Right now, this sector only accounts for 2.3 percent of total server sales, but M&M predicts that in the next five years to reach between 25 and 30 percent of sales worldwide.
While some large enterprises are already using micro servers in an area dominated by Intel Atom and Xeon CPUs, 64 bit ARM processors are set to appear in 2014 and that will change the market dynamics, the research company said.
North America is the biggest market for micro servers currently, followed by Europe, but it is expected that the Asian region will overtake Europe by 2018. Vendors already in the game include Intel, HP, Dell, Fujitsu and Samsung.
The comments from Bob Raikes, principal analyst at Meko, come as yet another two companies went to war late last week over patent infringement claims. This time it was Samsung who went after its rival LG, filing a suit and seeking invalidation of its patents on LCDs.
However LG was not blameless in the spat, kicking off the fight last month when it raised three patent infringement claims on LCD technologies against Samsung. In court documents filed last month in the Seoul Central District Court LG pointed the finger at its enemy, claiming that the Samsung Galaxy Note 10.1 infringed on three different patents related to LG’s In-Plane Switching (IPS) technology.
This led Samsung to retaliate with a an intellectual property tribunal, where it moaned to the court that three LCD patents held by LG Display were invalid as a result of existing patents on the same technology.
The spat is just one of many to come from tech companies with patent infringement claims been thrown about left, right and centre.
Samsung has had its fair share, going to war with LG in the past as well as well publicised disputes with Apple in the US.
However, it seems the war within the LCD and OLED markets may continue.
“The period of the development of LCD has been a period of cooperation and
competition,” Mr Raikes told ChannelEye.
“Basically, everybody uses very similar technology, materials and equipment. As a
result the industry grew very quickly and costs came down very rapidly. However, nobody made any money.
“For OLED (and there are no other technologies currently on the horizon),
the companies are trying to make profit, so there is relatively little cooperation. They know this is going to be slower, but they don’t want a repeat of the financial mess that the LCD industry is in.
“LG and Samsung use different technology, materials and manufacturing
techniques and equipment. Sony & Panasonic & AUO are collaborating on parts
of the technology, but only parts. They use different materials and techniques to the two Koreans.
“All of them will fight over who is doing what to try to protect their uniqueness.”
According to ABI Research, smartphones will represent 50 percent of all handset sales in 2013, and by 2018 2.4 billion smartphones shipping will represent 69 percent of all handsets. By then, LTE handsets will represent 50 percent of smartphone shipments and 35 percent of all handsts.
Michael Morgan, a senior analyst at ABI, said: “Apple will be chasing Samsung’s technology, software device leadership in 2013 through the foreseeable future.” He said that the Korean chaebol grew its smartphone market share from eight percent to over 30 percent last year. Apple will remain flat until 2018, he predicted. While Samsung is relying on Google Android for 90 percent of its smartphone shipments, ABI thinks that it will use other OSes including Bada, Tizen and Windows Phone.
Even though many handsets will support LTE in the future, people may not have access to LTE networks. ABI thinks that LTE will be the fastest growing WWAN in history.
Samsung has plenty of advantages over Apple – it is a vertically integrated company and is able to keep costs down by providing essential components from its own manufacturing arsenals.