A server here, a server there

By Jennifer Mears, NetworkWorld.com, 11/28/05

IDC just released its third quarter numbers for 2005 and said that end user spending on servers grew 8% to $12.5 billion in the third quarter compared to the same quarter a year ago.

Unit shipments were up 11%, about two-thirds the growth rate in the same quarter last year. Analysts say the lower growth rate is attributable to the increasing use of server virtualization, which demands higher performing and more costly servers, but fewer of them. Overall, volume server sales drove much of the growth, jumping nearly 15% compared to the same quarter a year ago. Midrange server revenues grew nearly 4%, while spending on the high-end continued to decline, dropping a little over 1%. It's the fourth quarter in a row that spending on the high-end has been down. Linux servers continued their strong showing, with spending jumping 34% and unit shipments up 20%. On the x86 side, spending on x86-64-based systems increased more than sevenfold, while spending on x86-2 servers was down 61%, illustrating the fast-moving transition to 64-bit compatible x86 systems. Overall IBM maintained the No. 1 spot in the server market with a 32% share. Get more details about IDC's findings here.

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