Australian server market cracks $US1 billion

Virtualisation take-up sees more richly configured servers being deployed

The Australian server market achieved record growth last year and cracked the $US1 billion mark, according to IDC.

The analyst group said the 17 per cent spending increase represented the strongest server growth since 1996. While unit shipments only increased by 2 per cent, analyst, Matthew Oostveen, said machines were more richly configured than what they had been in previous years. He attributed this to virtualisation take-up.

"Instead of getting numerous machines that are lightly populated with equipment, organisations are now being specked up and that is on the back of virtualisation," he said. "They can get more bang for their buck with each machine that's being linked together."

Overall growth in server spending was strong, underpinned by a 30.2 per cent increase in high-end enterprise server spending.

The most popular types of machines during 2007 were two-socket servers in the x86 space.

"We are seeing an uptake of four-socket servers as well, which has been a large growth area and indicates a side-effect of the virtualisation play taking place at the moment," Oostveen said.

Government and education markets were strong server markets at the end of 2007, Oostveen said. High performance computing was also starting to have an impact in some segments of the Australian market.

"There has been a lot of server refresh activity taking place as government reassesses its strategy on how it is going to deploy server technology over the next five years," Oostveen said. "In education we're not only seeing a strong uptake with the usual refresh of hardware and servers, but also a lot of intensive computing taking place."

In terms of units shipped, HP came up trumps followed by Dell. IBM was the leader in terms of vendor revenue.

Top five vendors in terms of revenue growth

  1. IBM 0.4 per cent
  2. HP 4.0 per cent
  3. Sun Microsystems 11.5 per cent
  4. Dell 2.7 per cent
  5. Acer 16.1 per cent Others 12.1 per cent

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