LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global servers market is expected to grow at a CAGR of 6.2% over the next five years due to the dynamic nature of business along with an increase in the need to automate certain business functions to reduce operation cycle times.
The research report titled ‘Global Servers Market: Procurement Market Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“The need for centralized business operations, growth of e-commerce, and analytics in predicting consumer behavior are some of the factors driving the growth of the global servers market,” says lead Technavio procurement specialist Suraj Kumar for category spend intelligence. “HPE, IBM, Dell Technologies, Cisco, and Lenovo currently dominate the global server market, contributing nearly 69% of the overall revenue,” adds Suraj.
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Cost saving opportunities in the global servers market
The adoption of various cost-optimization levers helps buyers in the global servers market realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the global servers market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology
Providers of server services adopt technologies such as nano servers, zero touch provisioning, solid-state drives, automation in hardware management, and persistent memory server platforms to ensure the delivery of high-quality services.
Suppliers who provide server systems with various software such as operating systems, hypervisors, server management agents, and anti-virus for operations are more likely to thrive in the servers market.
Optimization of procurement practices
Suppliers in the global servers market follow a centralized procurement model and a global sourcing model to enable up to 12% of the total category spend to buyers.
The suppliers provide a term based contract model with the option for periodic renewal or leasing. They offer bundled pricing models to provide additional cost saving opportunities to the buyers of their services.
Bundling of services
The global servers market suppliers bundle together services related to the implementation and maintenance of server systems-implementation, planning, training users, and providing related documentation. Buyers opt for suppliers who offer these bundled services, and save up to 15% of the total category spend.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.
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