Server Vendors Face Server Virtualization, Consolidation

As suggested by Data Center Journal in this new report, life for a server vendor is becoming more difficult with the growing popularity of server virtualization. Also noted in the report is that server virtualization, combined with tighter IT spending, almost certainly means tougher times ahead for server vendors.

"Growing restrictions on IT budgets are resulting in many changes, not only in the way a company lays out its purchasing patterns, but also in the thought process behind these patterns. IT managers are increasingly having their financial resources pared down. Therefore, constant thought is being given to server consolidation and virtualization as ways to cut costs.

"According to its latest survey on the server industry, almost all server support teams want to implement virtualization. Myron Kertsetter, managing director of TheInfoPro, observes that more and more enterprises are implementing virtualization to meet their server needs.

"For a server vendor, this almost certainly means tougher times ahead. Of the survey respondents, 38% plan to spend less this year on servers, and 25% plan to spend more. Spending on server software may see a downswing in the next year."

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