Tech Trends Impact 2006 Server Shipments

Gartner released figures this week that show worldwide server shipments increased by 9 percent to exceed 8 million units in 2006.

The increase in server sales is no surprise when paired with data from a Network Computing reader survey. According to the survey, the top driver of server initiatives in the enteprise is the need to replace new systems. Second, data center managers are also looking for improved reliability from their machines. Physical space savings came in third, which accounts for the continued growth in blades. What will be interesting to see in coming years is how rising energy costs affect sales. Andrew Conry-Murray NWC Business Editor

The findings show that while the industry as a whole posted a 2 percent gain in revenues for the year, x86 servers slowed significantly in the fourth quarter. Gartner says the slowdown is directly related to companies putting off server purchases as they await the rollout of new multicore x86 systems.

Additionally, Gartner says virtualization of x86 environments is having an effect on demand as businesses can run more virtual servers on fewer physical machines.