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Hardware Server Sales Slump as IT Pros Capitalize on Current Capacity and Add Virtualization and Consolidation to Get Through 2009 – New Research From TheInfoPro
TheInfoPro, an independent research company for the IT industry, today released new real-time data from its pending Server Study (final results due in October, Q3 2009) indicating that more than 50% of new servers being installed in 2009 will host virtualization, and future progressive growth indicates 80% by 2012.

Announced at VMworld 2009, TheInfoPro’s Server Study has conducted interviews with 195 IT pros wherein initial spending data indicates that 22% expect increases this year in server spending, but an additional 34% of the group indicates they’ll experience decreases. The IT pros range from Fortune 1000 (F1000) organizations to midsize enterprises (MSEs) in North America and Europe, and the interviews were completed between June and August 2009.

TheInfoPro Server Study also captures data about the rise of desktop virtualization, offers highlights on spending in each area of server management by vendor, and gives an in-depth look at VMware’s benefits and challenges in the current IT marketplace. For more information, visit TheInfoPro at booth #1322 or call the contact number below for a real-time briefing.

Hardware vs. Software Spending

TheInfoPro’s network of IT pros stated that virtualization and consolidation is a critical lifeline to optimizing the current capacity of their existing physical servers. Virtualization deployments will continue to expand in the coming months, with 70% of the respondents citing it as critical to meeting their business objectives. Though hardware spending continues to show little growth, more than 50% of respondents do expect to resume hardware acquisition once the economy stabilizes. For now, Hewlett-Packard is positioned as a strong vendor in future choice of spending and faces the lowest vulnerability to customer switching when compared to competing vendors.

In software, despite the revenue-dampening effect of enterprise licensing, Microsoft remained steady in its category, with 22% of respondents indicating they would spend more throughout the remainder of 2009. VMware and Red Hat remain strong in their respective categories, with 41% and 30% spending more in 2009, respectively.

“While virtualization does show continued growth in 2009, the depth of this penetration will really depend upon the ability to manage and deploy applications in these complex environments,” said Bob Gill, TheInfoPro’s Managing Director of Server Research. “The 2010 outlook and beyond are good indicators that even as IT budgets continue to rise, hardware spending will be looked at differently given the options of virtualization and consolidation.”

Published Tuesday, September 01, 2009 9:13 AM by David Marshall
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