PC Makers focus on Server Computers as Cloud Computing and Social Services Boom

Only Apple seems to thrive in consumer PC market these days. PC makers try to find their fortunes in the server market as cloud computing and social networks continue to grow extremely fast.

Sep 12 2011, 1:55pm CDT | by Luigi Lugmayr

PC Makers focus on Server Computers as Cloud Computing and Social Services Boom

If you still wonder why HP wants to get rid of the consumer PC business, it is because of the low margins in the consumer PC business. Only Apple has somehow figured out how to still grow market shares and make a killing on each computer sold to consumers. Many PC makers are now more than ever focus on businesses to sell servers. The drivers for that are cloud computing and the continuos growth of social services like Facebook and Twitter. On the one hand such services need a lots of servers to operate and on the other hand users create a ton of data in them that companies need to analyze.

Bloomberg reports that like in the consumer PC business there is a DIY trend in the server market that ready built server makers need to compete with. Facebook for instance built their own servers for two new data centers.

Consumers are basically now indirect creating a market for PC makers. The myriads of social activities that are created every second are becoming a valuable assert for companies. These data continues to grow exponentially and it is becoming increasingly valuable for companies to analyze.
Without the proper hardware, all of this data is virtually useless to business leaders. Bigger data sets require more computing power. Analysts attempting to run reports or query enormous sequel databases that are housed on out-of-date servers often find their computers slow or lock up. Some major companies who fail to upgrade servers appropriately even find that a few analysts pulling reports throughout the day can cause a decrease in productivity for the entire company.

The Dell high performance computing push is one example that show that PC makers caught on to this trend and offers equipment to crunch this data. The right amount of computing power depends on how much data the company needs to store and access on a regular basis. Failure to purchase the proper equipment may mean loss of revenue or increased labor costs due to slow or inadequate systems.

Next time you post a comment on Facebook, keep in mind that some server at some company will analyze it to understand you better for the good and the worse.

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Luigi Lugmayr
Luigi is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.