| "The $55bn market for servers has hit an inflection point, as average selling prices start to rise again after years of cut-throat competition and rampant commoditisation." "That, at least, is the hope that has been spreading through some of the worldâ??s biggest technology companies following the release of data pointing to a turnround in a market that forms a core part of their business." "â??We are thinking of this as more than an aberration,â? said Paul Miller, vice-president of marketing for " "The figures in question, released this month by the technology research group IDC, show the average prices of servers sold in the final quarter of last year rose by 5.2 per cent. That ended a long downward trend as big companies shifted an increasing part of their computing effort to large numbers of low-cost, standardised machines." "While cautioning that the extent of the fourth-quarter turnround reflected some seasonal factors, Matt Eastwood, an IDC analyst, said it pointed to an acceleration of trends that was first apparent about three years ago." "The earlier habit of buying low-cost machines â??by the pallet-fullâ?, often plugging in a new server for every new computing application, had left companies with unexpected costs, he said." "These included the expense of running under-utilised machines, many running at only 15-20 per cent capacity, and paying for information technology staff to maintain them." "Companies are now â??buying fewer machines, but the machines are much more richly configured; thereâ??s a lot more memory in themâ?, Mr Eastwood said." "That has led to an increase in demand for higher-end machines, which generally carry higher profit margins." "One of the main beneficiaries ... read the whole article |