News

Windows Server Propels x86 System Rebound

Despite a depressed market for servers over the past 18 months, the release of Microsoft's Windows Server 2008 R2 last year appears to have propelled a rebound in volume x86-based systems, according to IDC's latest Server Tracker Report.

Revenues for systems running Windows Server for the quarter were $5.4 billion, representing a 13.7 percent increase, while unit deliveries were up 5.5 percent year-over-year, IDC reported Thursday. Windows Server accounted for nearly 42 percent of overall server revenues for the period. That also represents the highest revenues for Windows Server in two years, according to IDC.

"I think Windows Server is going to continue to do well -- Microsoft has a strong release with 2008 R2 and Hyper-V bundled in," said IDC analyst Daniel Harrington. "I also expect Linux to stay steady and to also grow a bit and take share from those other laggard OSes out there."

Linux servers accounted for 14.7 percent of all servers shipped in the fourth quarter, up 1.4 points year-over-year. Revenues of $1.9 billion increased 6.1 percent. Unix server sales continued to decline, down 18 percent for the period.

However, the sharper-than-usual decline in Unix systems for the heavy buying season is in part due to the delayed release of IBM's Power 7 and Intel's Itanium processors. Both were recently released this quarter. "We could see a pop in demand in the mid-range systems market," Harrington said.

While sales of all servers decreased nearly 4 percent for the quarter year-over-year, revenues increased 9.9 percent over the prior quarter. That represents the second quarter of sequential revenue growth, according to IDC. For the year, server sales of $43 billion showed a 19 percent decline.

About the Author

Jeffrey Schwartz is editor of Redmond magazine and also covers cloud computing for Virtualization Review's Cloud Report. In addition, he writes the Channeling the Cloud column for Redmond Channel Partner. Follow him on Twitter @JeffreySchwartz.

Featured

  • Report: Cost, Sustainability Drive DaaS Adoption Beyond Remote Work

    Gartner's 2025 Magic Quadrant for Desktop as a Service reveals that while secure remote access remains a key driver of DaaS adoption, a growing number of deployments now focus on broader efficiency goals.

  • Windows 365 Reserve, Microsoft's Cloud PC Rental Service, Hits Preview

    Microsoft has launched a limited public preview of its new "Windows 365 Reserve" service, which lets organizations rent cloud PC instances in the event their Windows devices are stolen, lost or damaged.

  • Hands-On AI Skills Now Outshine Certs in Salary Stakes

    For AI-related roles, employers are prioritizing verifiable, hands-on abilities over framed certificates -- and they're paying a premium for it.

  • Roadblocks in Enterprise AI: Data and Skills Shortfalls Could Cost Millions

    Businesses risk losing up to $87 million a year if they fail to catch up with AI innovation, according to the Couchbase FY 2026 CIO AI Survey released this month.

Most   Popular