Server Market Picks Up

Author
Aron Schatz
Posted
November 22, 2006
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1156

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The server market is up. The third quarter had a large jump in revenue.

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Revenue in the server market grew by 3.5 percent worldwide in the third quarter, coming to $12.9 billion, according to IDC. That's the largest growth spurt in four quarters and the largest third-quarter increase since 2000, when the tech-buying binge of the dot-com days was in its final throes. Server blades were one of the primary drivers of growth, though at $738 million, blades still represent only a fraction of the overall market. Blade revenue shot up nearly 30 percent in the third quarter while unit shipments of blade servers went up about 25 percent. Revenue from high-end servers grew by 9 percent. Revenue from low-end servers, however, only grew by 3.8 percent, while mid-range server revenue declined by 2.3 percent.

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