Server Chips Fairing Better Than Rest Of Market, Intel says

That’s a bit of a surprise.

Inspite the downturn, companies are still buying lots of servers, versus desktops or notebooks.

And that’s according to Intel’s enterprise boss Pat Gelsinger at today’s the launch of the chipmaker’s server chip, Xeon 5500 (Nehalem).

“Servers are healthier than the rest of the market… With strength in sub-segments like HPC (High-Performance Computing) and large data centers… The server market is a a bit healthier than the overall unhealthy market,” said Gelsinger during the Nehalem press briefing.

Gelsinger also suggested that virtualisation is accelerating the refresh of servers, shortening their lifecycle; rather than negatively affecting the overall sales of servers as more companies use virtualisation to consolidate their IT systems on fewer servers.

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