The Ups And Downs Of The Server Cycle

June 22, 2020 Timothy Prickett Morgan

If you took a pause for your server upgrade plans in the first quarter as the coronavirus pandemic was starting to take root, you were not alone. But all things considered, the period ended in March was not as bad for server spending as you might have guessed, and we think that the second, third, and fourth quarters are the real test. The first quarter was just the warmup.

Business has been pretty brisk for those who sell server components, and the ODMs and OEMs have been pretty busy, wrestling with their supply chains and trying to meet customer demand …