DIY Servers Reducing Dell and HP Server Sales

DIY servers designed by social networking giant Facebook are poaching customers from Dell and Hewlett Packard, a new report reveals.

According to an article on Bloomberg, when Facebook started to build servers the company could not find what it wanted from Dell and HP so it decided to make their own - a concept being copied by several other companies who would have been Dell and HP server customers otherwise.

The new breed of Do-It-Yourself servers, which are being championed by big Internet companies like Facebook and Google are slowly poaching the market share from server makers like Dell and HP.

According to an analyst with Gartner, these DIY servers now account for 20 percent of the US server market, which was worth $31.9 billion last year.

The news is even more alarming considering the fact that traditional PC makers like Dell and HP are now branching out into the server markets.

“It’s definitely a threat to the traditional business model. Customers are finding solutions that the industry wasn’t ready to provide,” said In-Stat analyst, Jim McGregor.