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.

Join the PC World newsletter!

Error: Please check your email address.

Tags blade serversIDC

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Patrick Thibodeau

Computerworld (US)
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?