US server market will bounce back, says IDC

The US server market is poised to recover this year after a three-year slump, partly as a result of a migration toward...

The US server market is poised to recover this year after a three-year slump, partly as a result of a migration toward web-enabled platforms and architectures, IDC has predicted.

The research firm believed that the US server market would reach $18.2bn this year, representing 3% year-on-year growth over last year, while the worldwide market remains flat.

Sales of x86-based servers running on processors from Intel and Advanced Micro Devices and Windows and Linux operating systems will fuel the growth. The Linux server market is expected to see strong growth in particular, bounding 34% over last year to $3.1bn, while Windows server sales are forecast to grow 8% to $15bn.

Although blade servers only represented 3% of server shipments in the second quarter of this year, with 41,000 units shipped, IDC predicted that 2.2 million blades would ship worldwide by 2007, representing 27% of all new servers sold.

In contrast, sales of Unix servers have fallen by $12bn between 2000 and 2002, and IDC predicted that the market would stay flat over the next five years.

The server market is also expected to achieve growth in emerging markets in Asia/Pacific and Central and Eastern Europe, although markets in Japan, Western Europe and Latin America will continue to post sluggish sales, inhibiting worldwide server growth for 2003.

Looking further ahead, IDC predicted that the worldwide server market would achieve a compound annual growth rate of 2.8% over the next five years, growing to a $56.6bn market by 2007.

Scarlet Pruitt writes for IDG News Service



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