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Servers Crashing

Recently, Steve Ballmer made the stunning disclosure that Microsoft's server business is seriously challenged. And this is a business that had been on an upward trajectory that would make Alain Robert proud. (Look it up -- that's what MSN Live Search is for!)

Ballmer has reason to worry. It's hard to sell server software when no one is buying servers. Analyst firm IDC says the market dipped 3 percent in 2008 compared to 2007, mostly during in the fourth quarter when the market completely tanked. IDC doesn't expect a recovery until late this year or early next. That's if we're lucky, I say.

Are you buying as many servers as you used to? And if so, are you looking at energy efficiency and virtualization? Spending plans welcome at dbarney@redmondmag.com.

Posted by Doug Barney on February 27, 2009 at 11:53 AM


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