Size does matter for servers
The good news for server manufacturers is that they’re selling more of them, according to figures released by analyst house IDC. The bad news though is that the ones that are selling well are getting smaller – and cheaper. <br><br>
The good news for server manufacturers is that they’re selling more of them, according to figures released by analyst house IDC. The bad news though is that the ones that are selling well are getting smaller – and cheaper.
While overall unit shipments for servers rose 11.5% year-on-year for Q1 2003, total revenue made on those shipments fell 3.6% to $10.5 billion, IDC said. It put the difference in the two figures down to an increased interest by IT departments to buy low-cost servers and add incremental capacity to their existing computing infrastructures.
“The continued strength in the volume server space shows that the IT marketplace is still adding capacity but it is doing so with low-cost rack-optimised servers that fit within today’s restricted IT budgets,” said Vernon Turner, group vice president of Global Enteprise Server Solutions at IDC. “Worldwide server sales in the first quarter were in step with traditional seasonality, following a stronger fourth quarter. But they also reflect new buying patterns for server systems that have emerged during the economic downturn of 2001-2002.”
IDC defines volume servers as those models that fall under IDC’s price bands of $25,000 or less. Previously, IDC referred to such models as entry servers, and the price band went up to $100,000 or less. The changes were made to reflect declining average prices for servers and new pricing models.
Volume server sales increased nearly 10% year-on-year for the quarter, according to IDC figures. Other segments to do well were Linux sales, which rose 35% as the open source operating system continues to make headway in the corporate world, and Windows-based servers, the largest single segment in terms of unit shipments, which recorded an increase of nearly 10% in sales, accounting for $3.2 billion worth of revenue in Q1.
However, sluggish sales and intense pricing competition for mid-range and high-end Unix servers saw that market fall 12.9% year-on-year.