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Server Revenue Grew to $12.2 Million 2005

Monday, August 29, 2005
Revenue in the worldwide server market grew at 5.6 percent year over year to $12.2 billion in the second quarter of 2005. Volume server revenue grew 11.1 percent year over year and continues to represent the primary growth engine for the server market overall. Revenue for midrange enterprise servers grew 4.3% year over year, marking the second consecutive quarterly increase in that segment. However, the high-end enterprise server market, which grew from 4Q03 through 3Q04, declined 3.0% year over year, its third consecutive quarter of reduced spending.

While the market for high-end enterprise servers has dropped, sales of high-end Unix servers continus to grow.

"IT acquisition patterns are changing, and we are seeing the product mix of server investments change over time," said Matt Eastwood, program vice president of Worldwide Server Research at IDC. "Strength in midrange servers and Unix high-end servers shows that customers are balancing their scale-out volume server deployments with scale-up servers to handle business-processing workloads."

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