Quad core to kill server sales

By Staff writers, PC Authority

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Demand for x86 servers is set to slump because of the booming popularity of multicore chips and virtualisation, according to a leading research firm.

The new high-performance chips and the ability to run several virtual servers on a single machine means enterprises will require fewer physical servers, says IDC. Consequently, it now claims server shipments will only increase 39% by 2010, a sharp decrease on its previous estimate of 61%.

“If you gave a 32-bit single core customer a 64-bit quad-core product, they’ll maybe only buy one machine instead of two,” explains Martin Hingley, chief research officer at IDC. “We’re seeing huge adoption of virtualisation. The hope is that you can reduce the total number of servers by running virtual machines, reduce power consumption and reduce heat.”

Hardware vendors say demand for x86 servers hasn’t dropped off yet, but they’re already planning for the anticipated decline. “As we go forward, people will accept servers have an abundance of performance and eventually buy fewer servers. The marketplace will differentiate more using software and services rather than selling racks of tin,” says Phil McLean, product manager for ProLiant servers at HP.

However, just because companies aren’t buying as many servers doesn’t mean their IT expenditure will fall. IDC says companies will reinvest in servers with more memory, disk space and better I/O performance.

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