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Server Revenue Growing, Says IDC. 2005-11-23, HostMan.biz Market research firm IDC (idc.com) announced this week that it had released the findings of its Worldwide Quarterly Server Tracker, revealing that factory revenue in the worldwide server market increased by 8.1 percent year over year to $12.5 billion in the third quarter of 2005. This increase marks the tenth consecutive quarter of positive overall revenue growth, demonstrating that end-user investment in a robust server infrastructure continues to be essential component of other IT investments in software, storage and services. Volume server revenue grew 14.8 percent year over year and continues to be the primary growth engine for the server market overall. Revenue for midrange enterprise servers grew 3.8 percent year over year, marking its fourth consecutive quarterly increase. High-end enterprises, on the hand, showed a 1.2 percent decline year over year, marking the fourth consecutive quarter of declining revenue. "Although there was continued IT investment across all three server classes, the volume and midrange enterprise server segments are showing the strongest growth, speaking to IT purchasers' continuing focus on cost containment, which is often achieved through strategic server consolidation and server virtualization initiatives," says Matt Eastwood, program vice president of worldwide server research at IDC.

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