Menu
Blades are server market's bright spot, says IDC

Blades are server market's bright spot, says IDC

Enterprises pay higher prices for blade servers while still shunning Unix systems

While total 2009 server sales still remain below last year's totals, IDC's quarterly tracker report released today indicates that worldwide demand for the systems among enterprise customers may finally be increasing.

The IDC report on the worldwide server market showed that blade server revenues increased by 1.2% year-over-year in the third quarter -- the first server category to show positive growth this year. This revenue growth occurred even though shipments of blade servers declined by 14% from the year-earlier period.

IDC noted that blade server prices have increased by 10% over the past two quarters, which explains the revenue hike while overall shipments declined. The price increase was attributed to the use of new components in many blade servers. The new components include Intel's new Nehalem server chips , the Istanbul Opteron processor from Advanced Micro Devices and added support for DDR3 memory. The new technologies improve the ability of blade servers to handle more virtualization workloads.

"The revenue increase in blade servers is a sign that enterprises are beginning to spend again on technology, said Daniel Harrington, an analyst at IDC. "That's a good sign for the market."

Meanwhile, IDC said that sales of Unix servers continue to slump, as revenue declined by 23.4% compared to the year-ago quarter. But Harrington did note that enterprises tend to upgrade large Unix systems in the fourth quarter.

Overall, third quarter worldwide server revenue declined by 17.3% year-over-year to $10.4 billion. The period was the fifth consecutive quarter that year-over-year server revenue declined, but IDC added that sales passed the previous quarter for the first time since the fourth quarter of 2008.

Server unit shipments declined 17.9% year over year in the third quarter -- well below the 30% decline the second quarter. And, IDC added, third quarter unit shipments were up a "healthy" 12.4% from the second quarter.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags blade serversIDC

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments