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Servers are back
Server sales have finally broken the dotcom sales record. Companies in 2006 spent $52.3bn on the power hungry boxes, according to the latest IDC date.
And just like Sun Microsystems was hit hardest by the server sales decline after the internet bubble burst, the company is now first in line to profit from its rebounce. The system maker grew sales by 15.4 per cent to surpass Dell for the number 3 spot.
The 2006 data has "market shift" written all over it. Companies aren’t buying more servers so much as that they are buying more expensive ones. That bodes well for companies with a legacy of system building, while box pushers suffer the consequences of focusing on volume and failing to innovate. Sun again is the obvious winner, while HP and IBM failed to even keep pace with the average market growth.
The reason for all this server joy apparently is virtualization. Consolidating several boxes on a single, bigger server makes for lower energy bills and easier maintenance. We've been talking about it for years, but server buyers only now are starting to implement it.
Blade servers did well too, despite HP's Anne Livermore embracing the firm's c-Class systems as if it had some infectious disease at a launch event
February 27, 2007 at 12:59 AM | Permalink
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