Virtualization Daily

From Web Host Industry Review, Virtualization Slows Server Boom

Gartner says despite the numbers, the server market is still growing, but at a slower rate because of the increasing use of virtualized servers. The firm expects to see a significant impact from virtualization technology on server sales over the next five years, especially with regard to x86-class servers.

I was wondering when we were going to start seeing reports like this. This shouldn’t be all bad for server vendors though. They may sell a smaller quantity of machines, but the machines they do sell should be larger, higher margin models. Revenue growth may slow some, but if they play their cards right, solid profit growth could be in the cards.