The world is still trying to come to terms with the Covid-19 Pandemic. This deadly virus has impacted the tech industry in a big way. Despite the uncertainty around many factors of production and distribution, the tech sector as a whole is faring well so far.
A very major segment of global demand for IT hardware comprises of servers. After the advent of cloud computing and subsequent strong adoption, Cloud Service Providers (CSP) make up for the bulk of global demand for servers.
So far as the major cloud players are concerned, they had already ramped up their data center infrastructure all through the year 2018. For this reason, the global demand for servers remained lack luster throughout the year 2019.
Despite a spike in demand towards the last quarter of 2019, the global server shipments witnessed a decline of 3.1% when compared to the year 2018. This demand spike towards the end of 2019 can largely be attributed to the post Corona scenario.
Most suppliers of IT infrastructure as a Service – IaaS were quick to anticipate a strong demand for their solutions as soon as the world started enforcing lockdowns in a bid to contain the spread of the deadly Corona virus.
The trend for strong server demand is quite likely to continue at least well into the first half of the year 2020. However, the overall outlook is still quite unpredictable as global supply chains and logistics are disrupted at an unprecedented scale.