Enterprise servers market in Malaysia to grow 7.6%

Enterprise servers market in Malaysia to grow 7.6%

The overall addressable market for enterprise servers in Malaysia is expected to grow at a CAGR of 7.6% between 2020-2025, driven by the ongoing expansion of data center capabilities by leading vendors coupled with high-speed computing by the enterprises.

According to GlobalData, the five-year Digital Investments Future5 (DIF5) Strategy (2021-2025) of Malaysia Digital Economy Corporation (MDEC) focuses on investments and advancements of Malaysia’s digital economy in line with the Malaysia Digital Economy Blueprint or MyDIGITAL, which emphasizes investments in five key tech areas; Artificial Intelligence, Cloud Computing, Cybersecurity, Data Centers and digital content tools. Thus, providing impetus for enterprise spending on advanced computing infrastructure.

Additionally, the focus on five emerging technologies namely Blockchain, DroneTech, Edge computing, extended reality, and advanced robotics will further provide vendors with revenue potential in the enterprise server market.

“Server infrastructure adoption will strongly be driven by the increase in data center investments, owing to the rapid pace of digitalization, focus on data locality, and surge in high-speed computation requirements,” said Sunil Kumar Verma, Lead ICT Analyst at GlobalData.

Out of the two major components- hardware and managed server services, the overall spending on managed server services is set to grow at a CAGR of 9.9% over 2020-2025.

However, server hardware will continue to account for more than four-fifths of the revenue opportunity throughout the forecast period. Low-end servers will account for the majority share of the overall hardware segment, followed by mid-range and high-end servers respectively, owing to the increased adoption amongst startups and small and mid-size enterprises (SMEs) due to the cost-benefit scenario.

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