March processor sales totaled $20.3 billion worldwide, or 3.2 percent higher than the $19.7 billion reported for March 2006, according to new tallies from the Semiconductor Industry Association (SIA).
The March growth mirrored growth for the first quarter, when chip sales rose 3.2 percent to notch $61 billion, or almost $2 billion greater than Q1 2006.
However, thanks to heated competition in the market for personal computers, cell phones and other devices such as MP3 players, Q1 2007 semiconductor sales declined 6.5 percent compared to the $65.2 billion reported for Q4 2006.
The SIA said in a statement that price pressures from intense competition in market segments such as DRAMs (define), DSPs (define) and NAND Flash (define) limited growth despite higher unit shipments for these products.
For example, DRAM sales declined by just over 8 percent from Q4 2006 even as units increased over 16 percent. This is due largely to average sales prices dipping close to 20 percent over the same time period.
"Even with continued strength in unit sales of personal computers, mobile phones, and other portable consumer electronic products, an abundant supply of chips for these applications resulted in declining average selling prices as manufacturers sought to hold onto market share," said SIA President George Scalise.
This may make sales executives for the chip and PC makers pull at their hairlines, but it's good news for the consumer, as Scalise noted that the average sales price for a PC fell to $850.
By region, March chips sales in the Americas dropped 2.2 percent to $3.34 billion, yet grew 7.4 percent to $3.95 billion In Japan. Europe's chip sales grew 1.5 percent to $3.39 billion while Asia-Pacific dipped .04 percent to $9.66 billion for the largest share of the $20.3 billion worldwide chip tally.
For the year, Scalise said sales are running slightly ahead of last year's record level, but well short of the 10 percent growth projected in the forecast issued by SIA last November.
He also said reports that China's IT sector is experiencing slower growth coupled with a U.S. GDP growth rate that fell to 1.3 percent in the first quarter may make near-term outlooks more cautious.
http://www.internetnews.com/stats/article.php/3674911
Wednesday, May 2, 2007
3Leaf Hangs Hat on 'Elastic' Servers
Occasionally, a startup is born to try and challenge or ride the coattails of IBM (Quote), Sun Microsystems (Quote) and HP (Quote) in the multi-billion-dollar market for computer servers.
3Leaf Systems emerged from stealth mode today to announce its candidacy in the server market.
The Santa Clara, Calif., startup unveiled the 3Leaf Systems V-8000 Virtual I/O Server, which aims to offer customers performance-hungry and cost-conscious mainframe-like availability and reliability for x86 commodity systems.
3Leaf CEO Bob Quinn, who secured $20 million last September in a funding round led by Intel Capital, said V-8000 addresses the pain points datacenter managers feel by boosting server resource utilization far beyond its current 10 percent to 15 percent level.
"Due to the transition from scale-up to scale-out computing over the last 10 years, we've had to deal with extremely low utilization on our servers," Quinn told internetnews.com in a recent interview. "That low utilization drives power and space, which really puts the datacenter in a bind today."
Quinn also said the V-8000 will help accelerate the deployment and provisioning of new servers and provide high availability and management.
V-8000
V-8000 Virtual I/O Server.
Source: 3Leaf
"In this day and age, it should be possible, particularly with virtualization, to deploy servers -- maybe not instantly but certainly in under an hour," Quinn said. "Most datacenters take from four to 12 weeks to deploy a new server with a new application stack. That is unacceptable."
Perhaps most importantly, Quinn said customers who try the V-8OOO may realize capital expenditure savings of 50 percent from the get-go, as well as operations savings as great as 60 percent.
The V-8000 aims to boost the efficiency of existing x86 servers by delivering I/O connectivity for machines, eliminating the need for excess network and storage adapters, disks and switch ports.
This is because the servers are stateless nodes that connect to virtual Network Interface Cards, virtual Host Bus Adapters, and virtual disks through the V-8000. Fewer connections to the storage area network (SAN) means significant capital savings, Quinn said, and because there is less to manage, operating expenditures are reduced, as well.
Servers may be deployed faster with the help of the V-8000, too. Because the V-8000 allows servers to be defined in advance, spare nodes can have new profiles applied in minutes rather than weeks. Moreover, network and storage interfaces have been pre-allocated to server profiles to eliminate the provisioning of those products.
Quinn said the V-8000 also offers a kind of "elastic" computing resource, thanks to service policies that allow networking and storage levels to be raised or lowered as application demand changes.
Finally, the V-8000 may go down but it won't stay down. In case of a failure, the V-8000 automatically fails over to a redundant V-8000 with redundant networking and storage interfaces.
3Leaf enters a competitive computer server market, of which IBM, Sun Microsystems and HP command roughly three-quarters. However, Quinn pointed out, 3Leaf systems, recommended as pairs for $100,000 are intended to augment and support those companies' x86 servers, not replace them.
Evidence suggests there may be plenty of datacenter computing business to go around, even for startups like 3Leaf.
With IDC expecting money spent on IT consolidation projects to grow from $18.1 billion in 2004 to $24.7 billion in 2009, virtualization software sales are expected to rise from $340 million to $15 billion during that period.
That should provide more than enough opportunity for 3Leaf to succeed, Quinn said.
http://www.internetnews.com/storage/article.php/3674706
3Leaf Systems emerged from stealth mode today to announce its candidacy in the server market.
The Santa Clara, Calif., startup unveiled the 3Leaf Systems V-8000 Virtual I/O Server, which aims to offer customers performance-hungry and cost-conscious mainframe-like availability and reliability for x86 commodity systems.
3Leaf CEO Bob Quinn, who secured $20 million last September in a funding round led by Intel Capital, said V-8000 addresses the pain points datacenter managers feel by boosting server resource utilization far beyond its current 10 percent to 15 percent level.
"Due to the transition from scale-up to scale-out computing over the last 10 years, we've had to deal with extremely low utilization on our servers," Quinn told internetnews.com in a recent interview. "That low utilization drives power and space, which really puts the datacenter in a bind today."
Quinn also said the V-8000 will help accelerate the deployment and provisioning of new servers and provide high availability and management.
V-8000
V-8000 Virtual I/O Server.
Source: 3Leaf
"In this day and age, it should be possible, particularly with virtualization, to deploy servers -- maybe not instantly but certainly in under an hour," Quinn said. "Most datacenters take from four to 12 weeks to deploy a new server with a new application stack. That is unacceptable."
Perhaps most importantly, Quinn said customers who try the V-8OOO may realize capital expenditure savings of 50 percent from the get-go, as well as operations savings as great as 60 percent.
The V-8000 aims to boost the efficiency of existing x86 servers by delivering I/O connectivity for machines, eliminating the need for excess network and storage adapters, disks and switch ports.
This is because the servers are stateless nodes that connect to virtual Network Interface Cards, virtual Host Bus Adapters, and virtual disks through the V-8000. Fewer connections to the storage area network (SAN) means significant capital savings, Quinn said, and because there is less to manage, operating expenditures are reduced, as well.
Servers may be deployed faster with the help of the V-8000, too. Because the V-8000 allows servers to be defined in advance, spare nodes can have new profiles applied in minutes rather than weeks. Moreover, network and storage interfaces have been pre-allocated to server profiles to eliminate the provisioning of those products.
Quinn said the V-8000 also offers a kind of "elastic" computing resource, thanks to service policies that allow networking and storage levels to be raised or lowered as application demand changes.
Finally, the V-8000 may go down but it won't stay down. In case of a failure, the V-8000 automatically fails over to a redundant V-8000 with redundant networking and storage interfaces.
3Leaf enters a competitive computer server market, of which IBM, Sun Microsystems and HP command roughly three-quarters. However, Quinn pointed out, 3Leaf systems, recommended as pairs for $100,000 are intended to augment and support those companies' x86 servers, not replace them.
Evidence suggests there may be plenty of datacenter computing business to go around, even for startups like 3Leaf.
With IDC expecting money spent on IT consolidation projects to grow from $18.1 billion in 2004 to $24.7 billion in 2009, virtualization software sales are expected to rise from $340 million to $15 billion during that period.
That should provide more than enough opportunity for 3Leaf to succeed, Quinn said.
http://www.internetnews.com/storage/article.php/3674706
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