In light of Dell’s acquisition of EMC, previously the number one provider for storage equipment, the growth of virtualization is even more relevant than ever. EMC’s move to ownership by Dell could be seen as a reaction to shrinking hardware sales around the country.
EMC’s overall stock prices have barely grown over the past five years, costing between $20 and $30 since 2011. This slow development is also seen in overall data center system sales, which are projected to grow a mere 1.8% this year.
Other high-profile hardware sellers sales are slowing as well. IBM’s revenue is estimated to drop 10.6 percent this year as well as Hewlett-Packard sales, which are down 6.7 percent.
The overall move towards cloud computing is bad news for hardware vendors, but good news for cloud providers. Internet-based computing providers such as Amazon and Microsoft are both seeing sales of their cloud solutions grow drastically.
As the cloud adoption rate grows, it will be interesting to see if other hardware providers sales continue to diminish.