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Virtualization: Trouble for Servers?



BusinessWeek muses on the impact of virtualization on Server market and the industry as a whole.

The fortunes of chipmakers Intel and AMD could also turn in part on how the virtualization market develops. As companies use software from VMware, Microsoft, and smaller companies such as XenSource and Virtual Iron Software to consolidate sprawling sets of software programs onto fewer computers, the once fast-growing market for some types of servers—specifically, low-cost x86 servers—could suffer. "It does have an impact on total server count," says Diane Bryant, vice-president and general manager of Intel's server platforms group.

So far, vendors have managed to stave off ill effects of increased reliance on virtual machine software. After all, companies need to buy new servers to tap into the technology and many require more powerful and expensive hardware to exploit it. Intel points to customers' desire to update their data centers with new equipment to support virtualization and hasn't adjusted its shipment forecasts, says Boyd Davis, general manager of server platforms group marketing.


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