Tuesday, September 23, 2008

Info. Technology - Argentina - IDC: Drop in large server sales to put the brakes on market growth

A drop in sales of large servers will slow Argentina's server market in 2009, IDC's senior analyst for enterprise systems & storage, Juan Pablo Seminaria told BNamericas.


Seminaria said an unexpectedly high number of Argentine companies invested in large servers this year.

Still he said that large servers required a more long-term investment in comparison to blade servers, such as x86. Due to the amount of time and money required to implement the bigger devices, it is unlikely that the local market will see the same growth as this year.

Large server investments are unlike those found in the x86 market, where the demand is more continuous, he said.

Meanwhile, x86 server sales will grow at roughly 5% in terms of value in 2009, which is down from the 2008 growth rate of 10.5%. Seminaria attributed the decrease to "market saturation."

The analyst added that virtualization was also starting to have an effect on unit sales, as more companies look to consolidate their servers.

IDC recently forecasted that the server market would expand 2% next year in terms of value and 6% in terms of units compared to this year. Seminaria said the finance, telecommunications, and retail markets would account for the majority of the server demand in 2009.

According to the consultancy firm, the server market is expected to grow 8% this year in terms of value and 10% in terms of units sold compared to 2007.



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