5 per cent growth predicted for worldwide server market
21 June 2004
The resurgence in demand for enterprise server solutions is expected to continue throughout 2004, leading to an increase in worldwide spending for servers by 5 percent to $53 billion, according to recent research.
Research by business analysts IDC forecasts the server market will achieve a compound annual growth rate (CAGR) of 3.8 percent over the next five years, representing a $60.8 billion market in 2008.
"A good environment for hardware and software replacement and migration is helping fuel new enterprise spending for IT infrastructure," said Steve Josselyn, research director for IDC's Global Enterprise Server Solutions program.
"We anticipate growing demand in emerging markets, such as Eastern Europe and Asia, as well as mature markets like the U.S. and Western Europe."
From a regional perspective, IDC predicts that the U.S. will continue to hold the greatest share of the worldwide server market through the end of the forecast period, followed by Western Europe and Asia/Pacific (excluding Japan).
IDC expects the strongest growth over the next five years to be in Central and Eastern Europe, as well as the Asia/Pacific region, which are both expected to witness a CAGR in excess of 6.5 percent.
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