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Demand for x86 servers dropping worldwide

Increasingly widespread server virtualisation and multi-core processors are “disrupting” the worldwide server market and reducing supply, said analyst IDC.

The analyst said x86-based server deployment patterns are “changing dramatically”. The rapid emergence of multi-core architectures and virtualisation technologies is significantly restricting worldwide x86 server supplies, said IDC.

According to an updated market forecast, multi-core and virtualisation will cost the x86 market more than 4.5 million server deliveries and £1.26bn in customer spending between 2006-2010.

Overall, x86 supplies that were once projected to increase 61% by 2010, are now facing just 39% growth during the same period, said IDC.

"The server market is at a crossroads and customer buying behaviour is increasingly driven by the strategic business benefit of the IT investment, rather than a singular focus on cost containment,"said Matt Eastwood, an IDC analyst.

"In today's business environment, it is clear that technologies such as virtualisation and multi-core are particularly important enablers for the consolidated IT infrastructure that IT organisations are increasingly seeking to deploy," said Eastwood.

Looking forward, IDC said the server and component vendors will optimise around quad-core technology before moving ahead to octi-core (eight-core) technology.

Multi-core processors are chips equipped with multiple processing engines and virtualisation allows users to partition portions of their servers to run different operating systems or core applications.

Banks spend most on servers

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