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Hardware Server Sales Slump as IT Pros Capitalize on Current Capacity and Add Virtualization and Consolidation to Get Through 2009 – New Research From TheInfoPro

TheInfoPro, an independent research company for the IT industry, today released new real-time data from its pending Server Study (final results due in October, Q3 2009) indicating that more than 50% of new servers being installed in 2009 will host virtualization, and future progressive growth indicates 80% by 2012.

Announced at VMworld 2009, TheInfoPro’s Server Study has conducted interviews with 195 IT pros wherein initial spending data indicates that 22% expect increases this year in server spending, but an additional 34% of the group indicates they’ll experience decreases. The IT pros range from Fortune 1000 (F1000) organizations to midsize enterprises (MSEs) in North America and Europe, and the interviews were completed between June and August 2009.

TheInfoPro Server Study also captures data about the rise of desktop virtualization, offers highlights on spending in each area of server management by vendor, and gives an in-depth look at VMware’s benefits and challenges in the current IT marketplace. For more information, visit TheInfoPro at booth #1322 or call the contact number below for a real-time briefing.

Hardware vs. Software Spending

TheInfoPro’s network of IT pros stated that virtualization and consolidation is a critical lifeline to optimizing the current capacity of their existing physical servers. Virtualization deployments will continue to expand in the coming months, with 70% of the respondents citing it as critical to meeting their business objectives. Though hardware spending continues to show little growth, more than 50% of respondents do expect to resume hardware acquisition once the economy stabilizes. For now, Hewlett-Packard is positioned as a strong vendor in future choice of spending and faces the lowest vulnerability to customer switching when compared to competing vendors.

In software, despite the revenue-dampening effect of enterprise licensing, Microsoft remained steady in its category, with 22% of respondents indicating they would spend more throughout the remainder of 2009. VMware and Red Hat remain strong in their respective categories, with 41% and 30% spending more in 2009, respectively.

“While virtualization does show continued growth in 2009, the depth of this penetration will really depend upon the ability to manage and deploy applications in these complex environments,” said Bob Gill, TheInfoPro’s Managing Director of Server Research. “The 2010 outlook and beyond are good indicators that even as IT budgets continue to rise, hardware spending will be looked at differently given the options of virtualization and consolidation.”

About TheInfoPro’s Server Study

TheInfoPro’s biannual server study, based on in-depth interviews with IT pros at F1000 and MSE organizations, outlines where IT server departments within these organizations stand in terms of budgets, technology roadmaps, and technology provider choices and ratings. Current results are based on 195 hour-long interviews with IT professionals at Fortune 1000 and midsize organizations from June through August 2009. This data comes from the second of a series of Real-time Updates. The final, in-depth reports of the Server Study will be based on approximately 300 interviews and will be published in fall 2009. You can find out more information about TheInfoPro and our Server Study by visiting us at VMworld 2009 booth #1322 or by emailing [email protected].

About TheInfoPro

TheInfoPro is the only independent research network for the information technology (IT) industry. Through a peer network of more than 1,800 of the world’s largest buyers and users of IT, including Citigroup, FedEx, McGraw-Hill, MasterCard, Pfizer, Vodafone, PepsiCo, JPMorgan Chase and Harvard University, TheInfoPro delivers detailed budget, vendor performance and technology roadmap data without spin or bias. Known as the “voice of the customer,” TheInfoPro helps IT professionals, technology providers and institutional investors make sound decisions on technologies, vendor relationships and investments. Founded in 2002 by alumni of Gartner, Giga, EMC and Bell Labs, TheInfoPro is headquartered in New York City. To learn more, visit www.theinfopro.com or call (212) 672-0010.

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