Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Networking

    IDC Survey: IT Consolidation to Grow

    By
    Jeff Burt
    -
    June 8, 2006
    Share
    Facebook
    Twitter
    Linkedin

      The consolidation trend in data centers is going to grow as businesses continue to look for ways to reduce costs while making IT more responsive to business demands, according to a study by analyst firm IDC.

      The study, released June 7 and commissioned by Hewlett-Packard, says the consolidation market—which encompasses hardware, software and services—will grow from $18.1 billion in 2004 to $24.7 billion in 2009, a 6.5 percent growth rate.

      Infrastructure software aimed at consolidation projects—primarily virtualization and centralized management products—is expected to grow 13.1 percent, the IDC study showed. In addition, server consolidations share of overall server revenue will increase from 9.5 percent in 2004 to 12.6 percent in 2009, and similar growth is predicted for storage consolidation technology.

      HP officials looked to the study—a survey by IDC, of Framingham, Mass., of 240 IT managers and administrators in May and June—as a way to tout its IT Consolidation Solutions unit, which uses a mix of hardware, software and services to help customers reduce their data center resources.

      In addition, HP, of Palo Alto, Calif., is undergoing its own consolidation project, announcing May 17 that over the next few years it will trim the number of data centers worldwide from 85 to six, saving an estimated $1 billion in costs.

      /zimages/4/28571.gifClick here to read more about HPs data center consolidation.

      Within those data centers, HP will put its latest technology on display, from high-end Itanium-based Integrity servers to BladeSystem blade servers, as well as OpenView management software and cooling techniques.

      Steve Fink, director of IT consolidation solutions at HP, said his company has seen a trend in consolidation projects away from simply saving money by reducing the number of boxes in a data center to also making IT a critical part of a companys business operations.

      “Now its about business value, not just saving money in silos,” Fink said. “Cost is still an issue, but so is business responsiveness.”

      The IDC numbers back that up. IT managers surveyed cited that reducing costs was their top consolidation objective, at 30.8 percent. Increasing customer satisfaction was a close second, at 30.3 percent.

      This is creating a demand for a new model of centralized operations—one that focuses on such technologies as blade servers, strong management software and virtualization—while offering decentralized control to a companys business units.

      According to the IDC survey, virtualization is a key technology that is finding widespread and growing use. More than half of all virtual machines are being used in production environments, and 22 percent of installed servers currently are running virtualization software. In addition, 45 percent of planned server deployments are being eyed for virtualization projects, said the survey, which was presented by IDC analyst Matthew Eastwood.

      IDC has said it expects the virtualization market to grow to $15 billion by 2009.

      There are a combination of factors that are playing into the changing view of IT consolidation, HPs Fink said. Those include the continued IT budget pressures and the business needs being driven by such issues as the Internet, all at the same time that new technologies like blades and virtualization are coming to the fore.

      “Now youve got this group of [new] technologies, and people are beginning to take this step,” he said.

      HP also is heading in that direction. The company is looking to migrate much of its hardware into bladed form factors, and also is working to create common management capabilities among its systems, based on such products as OpenView and Systems Insight Manager.

      /zimages/4/28571.gifCheck out eWEEK.coms for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×