Feeds

Server sales do drunk cat bounce in 2010

Bad news for Oracle, better news for Dell

Remote control for virtualized desktops

For the last three quarters, the server business has been on the upswing, with strong growth relative to the perfectly awful sales levels set at the end of 2008 and in the first half of 2009. Intel is making money hand over fist, and even Advanced Micro Devices has put some black ink on its bottom line. The server business is back, right? Not so fast.

The server analysts at TheInfoPro have been speaking to what they say is a representative sample of the Fortune 1000 and a slew of midrange customers, and did detailed interviews with 252 of them to take the pulse of the server racket from March through early June. And if you are a server peddler hoping for big bucks later in 2010 and a rebound to 2007 server spending levels in 2011, you are going to be disappointed.

"People keep talking about a server refresh in 2010, that this is a year of recovery," explains Bob Gill, managing director of servers at The InfoPro, which was founded in 2002 by a bunch of Gartner, Giga, and Bell Labs analysts. "We just don't see it. We are not seeing the turnaround we had expected."

It was not a huge surprise to Gill last year when CIOs and IT managers said that they would be cutting back on server spending in 2009, given the state of the economy, but it was the first time since the company was founded that this had happened.

Now, 2010 is being given the dubious honor of being the second time when TheInfoPro's server survey is projecting a decline in server spending for the year. (Granted, the company does not have 20 years of data. But then again, IDC and Gartner, which have been around forever, only have data from the 1990s forward as well.)

In the latest survey, 38 per cent of IT shops said they were cutting their overall server spending in 2010, with only 25 per cent saying they planned to increase their budgets. Another 37 per cent said their budgets would be stable (meaning the budget was 5 per cent higher or lower than 2009's spending levels).

That is actually a bit worse than IT shops were expecting when they were polled about their 2010 plans back in the third quarter of 2009. If you look at the more recent polling from IT shops for 2010 spending on server gear, the cuts are deeper than the increases on a weighted average basis, which means server budgets as a whole are trending slightly down.

Looking ahead to 2011, the situation looks somewhat more optimistic, says Gill, with 39 per cent projecting flat spending for servers and 33 percent expecting to increase spending; but 29 per cent of those polled are expecting cuts.

Gill concurs with something that many of us have been predicting for years, which is that the virtualization effect would cause a downdraft in server footprint sales. "Server virtualization has permanently dampened hardware unit demand as virtualization's footprint grows within the enterprise," Gill wrote in his latest server report.

In an interview with El Reg, Gill said that vintage machines that were due to be replaced - many of them which were due to be replaced in late 2008 or throughout 2009 - are indeed being replaced this year. And new workloads are getting new iron, as they typically do.

Secure remote control for conventional and virtual desktops

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.