AMD’s recent server efforts are huge. The company not only released 64-core CPUs and worked hard to win designs from server manufacturers and cloud giants such as Google, but also prioritized the production of EPYC processors instead of client CPUs and GPUs.These efforts paid off in the second quarter, according to Analysis company Omdia, AMD has reached the highest server CPU market share in years.
AMD is gaining share
According to the report, approximately 3.4 million data center servers were sold in the second quarter of 2021 (the same as the previous year). In addition, due to the growing demand for hyper-scale cloud service providers, server manufacturers have received $21.5 billion in revenue.
AMD controlled 16% of data center servers, Intel lost some revenue share to AMD, and Arm-based servers continued to improve, albeit in a limited number. Omdia said that Ampere’s Altra (deployed by Oracle) and Fujitsu and Huawei’s chips are the most successful server-grade Arm SoCs.
Avid readers will definitely notice that the data from Omdia seems to be Data shared by Mercury Research Last month, this showed that AMD accounted for approximately 11.6% of server share in the second quarter of 2021. This is because Omdia includes all types of general-purpose servers in the report, such as mainstream/data center machines (blade, rack server, white box server) ultra-large-scale server, tower server, hyper-converged infrastructure server), edge server ( An emerging small category) and four-way and above servers.
Other companies do not include certain types of servers (for example, machines with four or more CPUs), which sometimes happen to be in categories that AMD does not participate in, which is why server-related reports from IDC, Mercury Research, and Omdia Can be different perspectives. As far as Omdia is concerned, it only covers data center machines.
Omdia said that AMD’s 16% share of data center servers is the company’s highest share in the market segment, but it did not elaborate. AMD control 25 years old and above% According to data from Mercury Research, the server market in the third quarter of 2006. It is important to remember that the server market is not only larger in volume than in 2006, but the machines themselves have also become more expensive, so more revenue can be obtained.
Super large-scale accelerated procurement
Omdia said that hyperscale vendors, especially Google, accelerated the adoption of AMD’s EPYC processors, helping AMD increase its share in the second quarter of 2021. The cloud provider has been Intel’s stronghold for many years, but it seems that AMD is beginning to gain traction here, just as it has gained traction with the enterprise.
When it comes to hyperscalers, it should be noted that they use white box servers produced by companies such as Wiwynn, QCT (Quanta), Tyan (MiTAC), and Ingrasys (Foxconn). These companies control 26% of the market and produced USD 5.566 billion worth of servers in the second quarter of 2021, an increase of 17% from the previous quarter and a year-on-year increase of 9%. In fact, hyperscale cloud service providers such as AWS, Azure, Facebook, and Google consumed more servers in the second quarter than any server supplier shipped during that time period.
Speaking of large server vendors. Dell EMC maintained its leading position, selling $3.655 billion worth of servers in the second quarter of 2021. Followed by HPE with sales of 2.727 billion US dollars (nearly one billion US dollars behind), and Inspur ranked third with 2.285 billion US dollars. Inspur’s sales increased by 45% month-on-month, so the company may have delivered several large orders to Chinese customers. At the same time, the company’s server sales fell by 5% year-on-year. In contrast, Lenovo’s server revenue increased to US$1.652 billion, an increase of 15% from the previous quarter and a year-on-year increase of 13%.
Shipments of risky servers
As the demand for servers continues to grow, everyone in the supply chain will benefit. Omdia predicts that server revenue will reach US$92 million in 2021, an increase of 11% compared to 2020. For obvious reasons, companies such as AMD benefit more than manufacturers of smaller components such as power management ICs (PMICs) or network controllers. Ironically, small component manufacturers may put further growth in the server market (and server revenue) in the second half of the year at risk.
Delivery time of certain server components Extend to 52 – 70 weeks By early July, some manufacturers were forced to purchase large quantities of cheap but critical components, putting additional pressure on the supply chain. PMICs are manufactured on relatively inexpensive 200mm wafer fabs, but it takes a long time to build additional capacity, so the shortage will continue for a long time.
According to several researchers, AMD is gaining server market share as the server market grows due to the needs of hyperscale cloud service providers. AMD has successfully won the design of enterprise server manufacturers, and is now gaining the favor of hyperscale manufacturers, which almost guarantees stable shipment growth.
Currently, AMD’s EPYC CPUs have an undisputed advantage over Intel’s Xeon processors: their number of cores. However, component shortages may slow server shipments, thereby slowing AMD’s expansion.