There are two items at play here...
1) Server consolidation - when I was at AMD a few years ago, I saw a series of roadmaps showing the predicted consolidation based on hypervisors 300 servers to 30. The immediate thought that went through my mind is "the cost of enterprise CPUs" need to go up otherwise there will be blood in chip market. Servers were the cash cow for the market.
2) Migration to cloud - this is really consolidation mk II. Move to the cloud and rely on focused efforts to migrate, load balance, spin up and spin down services. All with the economy of scale that large datacenters provide. This has hit the OEM manufacturers (HP, Dell, etc) since the larger players in the market can go direct to China with the volumes they need and
Ultimately it is a question of reducing unused capacity. According to some stats (google "datacenter utilization"), 1st party utilization is around 5-10%, cloud utilization is around 20-30%. The two items above really deliver a 1-2 punch to the Server and Chip industry.