During this call, we will highlight significant proof points of our progress to-date. Our product strategy is anchored around X-Gene, the world’s 64-bit ARM server platform delivering unparallel performance of the lowest total cost of ownership or TCO along with our entire portfolio of data center interconnect technologies that spans servers, racks and backlinks. Consequently our addressable market has almost quadrupled to approximately $7.5 billion and can be broken down as follows.
Number one, cloud servers projected to be $3.1 billion in 2016 with a four year CAGR of 31%. I’m excited to note that we’ve now achieved critical mass to bring APM’s X-Gene 64-bit ARM server on a chip to serve this high growth market. To contextualize while the software infrastructure which consists of Linux, Apache MySQL, PHP and Internet scripting language and Hadoop a distributed file system has come to become the defector standard for almost all internet infrastructure. The hardware has more recently come under a similar trend via the OCP, the Open Compute Project Initiative led by companies such as Facebook.
The cloud server category is distinguished by its total cost of ownership requirements which are dominated by operating power or energy consumption and session density. Data centers today consume an estimated 2% of the world’s electricity and this is doubling every five years. Open Compute represents the lowest common denominator of these requirements and for the first time in the history of the server market Open is the server architecture domain to ARM their by fueling this market.
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