IDC Forecasts Worldwide Appliance Server Revenue Growth

After exhibiting 166 percent revenue growth in 2000, appliance servers are proving themselves to be a force to be reckoned with in the worldwide server market, according to the latest report released by IDC.

IDC believes this rabid growth will continue and estimates worldwide revenue will grow from $3.8 billion in 2000 to $31.4 billion in 2005, representing a compound annual growth rate of 56 percent.

After exhibiting 166 percent revenue growth in 2000, appliance servers are proving themselves to be a force to be reckoned with in the worldwide server market, according to the latest report released by IDC.

Appliance servers, according to IDC, are changing the way vendors and customers think about server infrastructure solutions.

“In addition to offering solutions, appliance servers address ease of use and deployment along with robust system management tools to deliver a solution that reduces the demands being placed on IT personnel. This alone is a significant enough reason to expect these devices to continue to grow quickly,” said Mark Melenovsky, manager of IDC’s Global Enterprise Server Solutions research.

Network-attached storage or filer appliance servers represent, and will continue to represent, the bulk of appliance server revenue, according to IDC. Such devices will account for approximately 55 percent of the market through 2005. In terms of unit shipments, security appliance servers are currently the largest segment of the appliance server market.

“Appliance workloads will continue to evolve, and workloads such as e-mail, gateway, and database appliances will emerge within the next five years,” said John Humphreys, senior analyst with IDC’s Global Enterprise Server Solutions research program.

More detailed data can be found in the full report, “Forecast and Analysis of the Appliance Server Market, 2000-2005” (IDC #B24427), which analyzes the dynamics of the worldwide appliance server market. Included in the report are forecasts of worldwide shipments and revenue by workload category, as well as data on vendors’ market shares in terms of shipments and revenue in each category.

For more information or to purchase this report, contact Patrick Steeves at +1 800 343 4952, extension 6787 or at psteeves@idc.com.

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