Facebook and Open Compute disrupt the Server Market

Stacey Higginbotham has a post on Facebook/Open Compute's announcement that disrupts the server market.

Sitting next to Stacey I get a chance to see what she is going to write before it posts and she does a good job of summarizing Frank Frankovsky's opening keynote.

Facebook and Open Compute just blew up the server and disrupted a $55B market

 

21 MINS AGO

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Frank Frankovsky of Facebook holding an Applied Micro board.
photo: Stacey Higginbotham
SUMMARY:

Facebook took aim at the hardware business back in April 2011 with the launch of the Open Compute open hardware program, and Wednesday is fired the killing blow at the $55 billion server business.

The launch of two new features into the Open Compute hardware specifications on Wednesday has managed to do what Facebook has been threatening to do since it began building its vanity-free hardware back in 2010. The company has blown up the server — reducing it to interchangeable components.

With this step it has disrupted the hardware business from the chips all the way up to the switches. It has also killed the server business, which IDC estimates will bring in $55 billion in revenue for 2012.