AMD Achieves ‘EPYC’ Record-Breaking 16% Market Share In Recent Quarter

Analyst firm, Omdia, reported recently that AMD achieved a strong 16% server market share in the recent quarter. Part of the historic market share for the company comes from “demand from hyper scale cloud service providers, and Google in particular,” reports Business Wire.

AMD Achieves an EPIC 16% Server Market Share Thanks To EPYC CPUs, Reports Omida

With the huge requirement for server needs, and even with the industry suffering capabilities of fulfilling orders on time, AMD showed “a total of $21.5 billion dollars of vendor revenue.”

Revenue from servers is expected to see a growth of 11%, accessing a total of $92 billion. The server market is seeing steady increases due to server prices increasing, as well as utilizing optimal compute workloads and heavy data tasks, such as AI and analytics. This has caused a need for more efficient storage solutions and increased memory.

There is a dire shortage of some critical components like power management integrated circuits (PMICs) which could impact server shipments, particularly in the backend of the year. Server vendors have increased their component inventory levels to mitigate the shortage and limit the impact of long lead times. This short-term resolution is putting extra strain on the already stressed server component supply chain and is pushing prices up.

“Demands for semiconductors related to power management, have gone up exponentially due to proliferation of smartphones, other personal electronics devices, increasing electronics systems in cars, and Internet of Things devices. Components like PMICs are normally manufactured on an 8-inch wafer to make it competitively priced. Over the last many years there was no significant investment in 8-inch fab capacity as it was considered a low margin business. This makes it difficult to solve the supply shortage issue in the short term,” said Manoj Sukumaran, principal analyst, data center computing and networking, at Omdia. “As the supply shortage worsened this year, some companies started investing in 8-inch capacity, but considering that capacity expansion takes at least a year to be productive, it is likely that the PMIC shortage will continue until next year.”

Intel made notice that it will attempt a different approach to their CPU architecture with their newest processors, enabling “throughput efficiency and multitasking with the low voltage operation creating headroom to increase the frequency and scale-up performance for more demanding workloads. The performance-core design appropriately targets single-threaded application performance.” Intel’s newest CPU architectures will allow for higher amounts of CPU customization to match a larger range of applications.

As the battle of the x86 architectures continues, Arm-based CPU vendors have been making great progress in penetrating the servers of the hyperscale cloud service providers. Although Graviton deployments at AWS somewhat slowed down in 2Q20, Oracle’s deployments of servers with Ampere’s CPU ramped. We also saw good momentum for Fujitsu and Huawei’s Arm-based CPUs.

Omdia had this to say about the recent AMD market share results in the last quarter in conjunction with the need for increased technological breakthroughs, such as consumer-use supercomputers:

“We’ve tracked the evolution of technology consumption models for many years and were not surprised by the renewed efforts of server vendors to provide their infrastructure as a service, albeit located at the premises of their customers,” said Vlad Galabov, director, cloud and data center research, at Omdia. “In the second quarter of 2021 HPE, Dell and Lenovo all reported strong traction for their individual offerings. Interestingly, HPE also delivered a supercomputer as a service. This is in line with a broader trend we see at large enterprises for lowering capital expenditure in favor of higher operating expenses.”

Worldwide data center server revenue by vendor

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