Server sales tank as folks stretch hardware life cycles

Matt Stansberry Profile: Matt Stansberry

According to IDC’s recent server report, server sales are plummeting due to the slumping global economy. According to IDC, this is the lowest quarterly server revenue since the analyst firm began tracking the server market on a quarterly basis 12 years ago.

The commodity server market took a big hit in general, while Dell specifically had a bad start to 2009. Dell’s server revenue declined 31.2% year over year. Even blade servers slumped, for the first time since IDC had tracked blades.

According to our 2009 data center economy survey, IT pros are stretching stretching server life cycles, putting off buying new hardware.

Servers are typically replaced every three years. Two-thirds of IT shops have extended the production life of server deployments in 2009. More than 35% say they’ll keep servers in production for six months to a year longer, 34% say they’ll extend server life cycles by two years.

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