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Server Sales Remain Strong

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If virtualization is taking a bite out of the server market, someone forgot to tell the customers.

 

Despite widespread predictions that consolidation and partitioning would cause enterprises to scale back hardware deployments, server shipments jumped by 9 percent in the last quarter, according to market research from IDC, putting full-year growth at 6.7 percent to about 8 million units.

 

In dollar terms, the fourth quarter saw revenues jump 2.4 percent to $15.7 billion, with yearly growth coming in at 3.6 percent to $54.4 billion. In fact, 2007 saw the highest server revenues since 2000.

 

Once again, IBM held the top spot with 36.7 percent of the market, followed by HP with 27.7 percent, Dell at 10.1 percent, Sun at 9.3 percent and Fujitsu-Siemens at 7.1 percent. Sun was the only vendor to report a server revenue decline (2.4 percent) in the fourth quarter.

 

Despite the strong numbers, IDC is predicting slower sales going forward as the economic slowdown continues and datacenter managers feel increased pressure to improve performance through consolidation rather than new hardware spending.

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