September 20, 2010 11:08 ET

Blade Servers Provide Improved Asset Utilization, IT Flexibility & Energy Efficiency

ROCKVILLE, MD--(Marketwire - September 20, 2010) - has announced the addition of GBI Research's new report "The Energy Efficient IT Equipment Market to 2020 -- Increasing Capital Requirements and Significant Inefficiencies Boosting Green Data Centers," to their collection of Computer Equipment market reports. For more information, visit

Rising energy cost and evolving regulations and legislations to adopt energy efficiency by various governments across globe are working in tandem to draw the attention towards the energy efficient IT equipment. The cost of electricity production is bound to go on an upward spiral with the rapid depletion of fossil fuels and huge investment in exploring new oil mines in the future. Energy efficient IT equipment not only reduces companies' energy costs but also supports business growth by making the energy previously used by the physical infrastructure available to power new server, storage and communications equipment.

Lack of industry measure for sustainability is a pressing concern. Despite governments' actions to tighten the noose on carbon outputs, approximately 80% of IT equipment in the market lacks green accreditation. Although standards such as Energy Star provide some strict guidelines, there is no single standard associated with sustainability -- different countries use different standards. There are a number of different standards such as Blue Angel, Electronic Product Environmental Assessment Tool (EPEAT), and the government's own 'Quick Wins.' The global nature of a standard is essential to avoid the existence of non-harmonized standards for similar technologies in different countries, leading to artificial "technical barriers to trade."

Blade servers, one of the most efficient servers available in the market, accounted for 12.5% of overall server revenue in 2009. The global blade server market was valued at $5.4 billion in 2009 as compared to $2.1 billion in 2005. The blade servers market is driven by the x86 systems which accounted for more than 87% of the total blade servers' revenue in 2009. Despite the economic downturn and tighter budgets, the blade server segment experienced revenue growth and an increase in average selling price in 2009.

Blade servers provide the benefits of improved asset utilization, IT flexibility and energy efficiency as compared to the traditional servers. IT customers across the globe recognize the benefits of consolidation, high density, less space and so on. Hence, customers are leveraging the platform to deliver a dynamic IT environment. Blade server vendors in their interviews with GBI Research support the high growth of blade servers in the years ahead. GBI Research, in consensus with the industry experts, anticipates the blade server market to grow at a Compound Annual Growth Rate (CAGR) of 12.4% during the forecast period 2010-2020.

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