Virtualisation Bites

According to Emergic server sales are slowing down due to virtualisation.

“There was a surprising slowdown in unit sales of x86 servers in the fourth quarter, according to two prominent research firms, Gartner Inc. and IDC. For example, IDC found that sales grew just 1.1% to 1.85 million units, compared with 8.8% growth in the third quarter. That is the worst performance for the market segment since the dot-com bust, and IDC analyst Matt Eastwood lays the blame largely on virtualization.”

It has been coming for a while. Too many servers just running at a few percent utilisation creating a server sprawl which takes up precious room (hence server consolidation and blades) and eats up energy.  Virtualisation has been on the radar for a while but now it looks like it is biting and reducing server sales although customers will buy bigger, beefier servers.

Bad news for the server makers but good news for the customers. Atthough there are less physical servers to manage there is still the need to manage the virtual servers as well with MOM/SCOM agents or SMS/WUS agents. A critical server is still a critical server even if it is only running at 5% utilisation and is now virtualised.

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