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Report: Server Growth Paced By Blades, Linux

The worldwide server market is expected to grow 5 percent this year, with some segments--Linux and blade categories, in particular--about to break out, according to a new report.

IDC expects the overall enterprise-server market to grow 5 percent in 2004 and to achieve a compound annual growth rate (CAGR) over the next five years of 3.8 percent, as the dollar value of the market moves from $53 billion this year to $60.8 billion in 2008.

"Unix is still the biggest dollar spent--$19.4 billion," said IDC's Mark Melenovsky in an interview Wednesday, as he outlined annual revenue figures for server operating systems. "Even so, Unix suffered a little bit of a decline last year--6 percent down." Melenovsky, an IDC analyst specializing in servers, predicts a turnaround for Unix this year, however; he figures Unix-server sales will increase by about 3 percent.

The most dramatic growth is for Linux-based servers. IDC says they are growing at a 47 percent rate, although from a small base, reaching $3.23 billion this year. The Linux market is expected to capture 29 percent of the server market by 2008, nearly tripling its current market share.

"There continues to be very strong growth in the X86 industry standard-server market--particularly for Windows and Linux-based solutions," Melenovsky said. "Growth has been strong for everything from standalone systems in small offices to several hundred node clusters in enterprise data centers."

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