Slow Server Growth

IDC is still forecasting that the server market will continue to grow, but not at the rate earlier projected. Last week, IDC lowered its forecast for server growth to 3.2%, down from 6.1% in September. Nevertheless, IDC maintained that it believes server growth will accelerate as economic conditions improve.

“The macroeconomic environment will continue to be a defining factor for the market performance in the short term,” noted IDC worldwide enterprise infrastructure research director Juan Seminara and analyst Viranart Chandarasanti. “In the longer term, continuous investments in infrastructure modernization, fast-growing workloads like AI/ML, and continued investments in cloud and edge deployments will drive further growth in the market.”