Overview
In
the world of Wintel-based Servers (a/k/a PC Servers), the types of machines
offered are as varied as the applications for which they are used. Although
it is risky to apply terms too broadly, we can break the server market
into six segments, and provide a guide to the features and characteristics
of each. (There are other ways the market can be segmented - we have chosen
this because it more "accessible" to the general user.)
In
general, servers are segmented by the size of the user population they
serve - from small "Mom and Pop" shops up to large companies with thousands
of employees. However, there are exceptions, which will also be explored
herein.
Segments
The
size-related segments we have defined, from smallest population served
to largest, are:
- Workgroup
- Department
- Mid-Range
- Enterprise
- Super-Enterprise
All
of the above segments are for general-purpose servers - those which try
to have a broad mix of features and functions, to appeal to the widest
range of customers The sixth segment is relatively new, only a few years
old. Rather than being defined by number of users, it is categorized in
terms of what it does, not whom it serves. This segment is variously referred
to as "Single-Function Server", "Server Appliance", "Information Appliance",
"Thin Server", and "Task Server" - each designation having slightly different
connotations. For simplicity, we will lump the sub-genres together and
refer to the general product group as "Appliance Server". This segment
(for both Wintel and Unix/Linux-based systems) is predicted to grow to
$8 Billion by 2003. [Source: IDC].
Segment
Definitions
For
the purposes of this document, we will use the definitions below. (Over
time, these definitions have changed, and will continue to change, and
we expect that segments will consolidate.) Refer to Graph 1 for approximate
user quantity vs. segment map.

- Workgroup:
Users: Generally serves small groups, from as little as two or
three, up to 20 or 30 clients/users.
Pricing: Usually low-priced (under $2000)
Typical Uses: E-mail, file, and print serving.
Functionality: Medium functionality, positioned slightly above
a high-end PC.
Examples: Compaq ProLiant ML330, Dell PowerEdge 1300, HP NetServer
E60, IBM Netfinity 3500 M20
- Department:
Users: Handles moderate-sized groups, from 10 users up to 50+
(or even 100) users
Pricing: Under $2000 base price for some models
Typical Uses: E-mail, file, and print serving
Functionality: Increased reliability, power, and functionality
Additional Comments: The line between workgroup and department
servers is becoming blurred as high-end computing power increases.
Examples: PowerEdge 4400, NetServer LC2000, Netfinity 5100, ProLiant
ML350
- Mid-Range:
Users: Handles larger groups, starting around 50+ users, up to
100-200+ users.
Pricing: Starting around $3000-$4000 for base systems
Typical Uses: Messaging/e-mail, file/print serving, mid-range
compute-intense tasks
Functionality: Reliability and performance features become more
significant/powerful.
Additional Comments: These servers are sometimes referred
to as "Small-Medium Business Servers". The line between department and
mid-range servers is becoming blurred as high-end computing power increases.
Examples: NetServer LH4r, Netfinity 5600, ProLiant ML370, PowerEdge
6450
- Enterprise:
Users: Handles large groups, 200-500+ users/clients.
Pricing: Starting above $5000, generally in the $7K-$8K range
for a base system. Fully configured systems can easily exceed $500K
Typical Uses: Data warehousing, large database management,
and heavy-duty transaction processing.
Functionality: Much larger emphasis on reliability, performance,
and functionality.
Additional Comments: At this level, servers are sometimes
architected to have functionality moved "outside the box". For example,
hard disk storage within the server may be minimal (just enough to hold
the OS), and the server is designed to be rack-mounted with a large
RAID array installed in the same rack.
Examples: Netfinity 7600, ProLiant ML570, PowerEdge 6400, NetServer
LH6000
- Super-Enterprise:
Users: Generally exceeding 500 users/clients, sometimes more
than 1000
Pricing: Starts in the $20K range for basic systems, but a fully
configured system, plus associated storage, memory, and options can
exceed $1 Million.
Typical Uses: Data warehousing, massive DB management,
high intensity transaction processing (>40,000 tpmC).
Functionality: Reliability is extremely important, more so than
pricing. Computing performance and functionality are also key.
Examples: ProLiant 8500, PowerEdge 8450, NetServer LXr 8500,
Netfinity 8500
- Appliance:
Users: ISPs, small groups,
Pricing: Around $1000 for a base system
Typical Uses: Web caching, web serving, intranet serving,
Storage Area Networks
Functionality: Easy to install/set up, scalability, CPU density
(in rackmount systems)
Examples: Cobalt Networks RaQ, Netfinity 4000R, NetServer LPr,
Compaq TaskSmart, Dell PowerApp
Correlation
Factors
Now
that we have defined the segments, what can we expect to get for our money,
and what is the correlation between market segment and feature/function
set? In other words, on which areas (e.g., processing power, reliability,
price) can we expect each of the segments to focus?
The
features and functions that matter in servers are separated into two general
groups, which we can call "Goals" (which are more strategic in nature)
and "Features" (which are more tactical in nature). In other words, "Goals"
are the overarching categories, and "Features" are the implementation
methods or physical constructs by which the goals are achieved.
The
factors listed in Table 1 are a sampling of some of the more important
ones; there are others that users will find relevant to their particular
situation or need. Different users will have different requirements, and
thus factor weightings will vary by user, so the relative "weight" of
each factor is not part of Table 1.
Customers
can use the Table, in concert with other sizing tools (usually based on
the software or infrastructure, such as SAP R/3 or Microsoft Exchange),
to help them determine which class of server will be best suited to their
needs.
Table
1 shows the correlation of the various Goals and Features to the defined
segments.
Table
1
|
|
App. |
Wkgrp. |
Dept |
Mid-Range |
Ent. |
Super-
Ent. |
|
Goals
|
|
|
|
|
|
|
|
Performance/
Power
|
H
|
M
|
M
|
H
|
H
|
H
|
|
High
Reliability
|
L-M
|
M
|
M
|
M-H
|
H
|
H
|
|
Price
|
H
|
H
|
H
|
M
|
M
|
M
|
|
TCO
|
H
|
H
|
H
|
H
|
M
|
M
|
|
Flexibility
|
L
|
L
|
M
|
M
|
H
|
H
|
|
Service/
Support
|
L
|
M
|
M
|
M
|
H
|
H
|
|
|
|
Features
|
|
|
|
|
|
|
|
Multiple
CPUs (qty.)
|
L
|
L
|
L
|
M
|
H
|
H
|
|
Storage
(internal)
|
L
|
M
|
H
|
H
|
H
|
M
|
|
redundancy
|
L
|
L
|
M
|
M
|
H
|
H
|
|
Fans
|
L
|
L
|
L
|
M
|
H
|
H
|
|
Power
|
M
|
L
|
M
|
H
|
H
|
H
|
|
NICs
|
M
|
L
|
L
|
M
|
H
|
H
|
|
Hot
Swap/
Maintainability
|
L
|
L-M
|
M
|
M
|
H
|
H
|
|
Fans
|
L
|
L
|
M
|
M
|
H
|
H
|
|
Drives
|
M-H
|
M
|
M
|
H
|
H
|
H
|
|
Power
|
L
|
L
|
M
|
M
|
H
|
H
|
|
|
|
How
to Interpret
Table 1
|
Correlation
Factor |
|
L
|
Low |
|
L-M
|
Low/Medium |
|
M
|
Medium |
|
M-H
|
Medium/High
|
|
H
|
High
|
| For
any given factor, a correlation rating (Low, Medium, High) is given
for each of the segments. This rating is an indicator of how much
emphasis is placed on that particular factor for that particular segment.
For example, "Price" is very important in the selection of a Workgroup
or an Appliance server, but not quite as important for a Super-Enterprise
server. Similarly, "High Reliability" is very important in the Enterprise
and Super-Enterprise market space, but less of a consideration for
an Appliance server. |
Factor
Definitions :
Performance/Power:
Computational (or similar) power, the ability to perform a large
number of operations or to handle a large workload.
High
Reliability: The ability to run without a non-recoverable
failure for long periods of time. (Note that "reliability" is
a goal for all classes of server. The term "high reliability"
is used because different server classes require different levels
of reliability.
Price:
Base system price, or price with a modest complement of features
added. Total Cost of Ownership (TCO): An amalgam of fully-configured
system price, installation/setup/training costs, infrastructure
costs, downtime costs, and other factors.
Flexibility:
The ability of the server to be reconfigured for disparate tasks/functionality,
as needed by the user. Service/support: Related to availability
and reliability, maintainability, and ease-of-use considerations.
High
CPU qty.: Whether a server can support four, eight, or more
CPUs
Storage
(internal): The storage capacity, both in terms of raw space
(i.e. how many gigabytes) and number of disk drives, a server
can support inside the chassis.
Redundancy:
Whether a given component (e.g. fan, power supply, network interface
card, disk drive) has a backup and a failover mechanism. Redundancy
is a method for improving system reliability/availability.
Hot
Swap/Maintainability: The ability to remove and replace a
component (e.g. fan, disk drive, power supply) without having
to shut down the system or cause processing functions to stop.
|
Outlook
As
the server market consolidates, market/product segment distinctions -
especially at the low end - will blur. We believe that within 12-24 months,
there will be only three size-related segments (Entry/Workgroup, Department,
and Enterprise) plus the general class of Appliance servers. As the number
of segments decreases, the distinction between them will increase. However,
certain patterns will be maintained, such as Enterprise Servers needing
to be extremely reliable. Customers should keep these factors in mind
as they move toward future server purchases.