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Server Sales Dip To 12 Year Low

Discussion in 'News' started by craigie, May 29, 2009.

  1. craigie

    craigie Terabyte Poster


    Server Sales Dip To 12 Year Low

    The first quarter saw a number of records broken in the global server market - but for all the wrong reasons.

    Customers across all geographies shelved spending plans which forced quarterly server revenues down to the lowest level seen by market watcher IDC since it began analysing the space 12 years ago.

    The sector fell 24.5% in value to $9.9bn in the opening three months of 2009, the third consecutive quarter of year-over-year declines.

    The recession has permeated all geographic regions and customers of all types, said Matt Eastwood, IDC group vice-president of Enterprise Platforms.

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    1. wagnerk
      The recession has something to do with this, but I also believe that server virtualisation also has something to do with this. Instead of replacing 3 servers this year, I'm buying (hopefully) the IBM modular server (think of a 6 or 7 slot blade server and san in one, that's expandable with an additional SAN).

    2. JK2447
      Thats what our place is doing. Our test lab is littered with IBM servers (which are still quite good) because the Blades are taking over. They are ace tho. Have you seen the heat that comes out of Blades? Hope your server rooms got good aircon Ken :eek:
    3. wagnerk
      We've got 2 aircon units at our place for the servers, the good thing is that we're planning on going from 16 physical servers down to 1 modular server (with 2 or 3 "blades") and 2 physical servers. So in theory the heat generated will be less...

    4. zebulebu
      We've gone from 63 physical servers to 5 ESX hosts, a couple of SANs and 7 non-virtualised servers in 18 months. Historically we would have bought 15-20 servers in the past year (replacements, upgrades, new products) - this year we've bought one more ESX host.

      Virtualisation is having a massive effect on the server market - coupled with the unprecedented economic downturn. I suspect there will be huge changes in the server market in the next two years, with some major amalgamations, takeovers and firms going to the wall.

      Regarding aircon - have you seen the intelligent power management in ESX? It absolutely rules - I've seen data center demos where power consumption can be cut by ridiculous numbers simply by efficient use of Vmotion & DRS. For the larger enterprise, although it comes with heavy caveats (training, staff aversion due to job cuts, serious problems with major outages like the timebomb SNAFU in 3.5u2 last year) ESX is like manna from heaven in times of economic strife.
    5. itskillsguy
      Your bang on the money with that one. Virtualisation is one hot topic at the moment, although in 3 years time, it won't make companies in the IT Channel any more money. SaaS is another hot potato at the moment. 2 years ago, SaaS accounted for under £1m of the total IT channel revenue. This year, it's £3bn.

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