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Strong Growth Projected for IT Consolidation MarketPALO ALTO, Calif., June 7, 2006
HP today unveiled new research that indicates IT consolidation will grow at a strong rate in the coming years.
The research, conducted by market intelligence firm IDC, reveals that the IT consolidation market is expected to grow 6.5 percent from 2004 to 2009, from $18.1 billion to $24.7 billion, outpacing growth of the overall IT market.(1)
The IT consolidation market forecast figures reveal growth trends within each of the four major enterprise technology categories that HP serves: storage, servers, infrastructure software and services.
With a portfolio that spans the data center to the workplace, HP has positioned itself to lead the growing IT consolidation market. HP IT Consolidation, an HP Adaptive Enterprise solution, includes standards-based hardware, software and services that enable customers to reduce their data centers, consolidate servers and storage systems, integrate application environments and address other consolidation needs.
According to the report:
The need for IT consolidation and its underlying technologies have gained widespread acceptance in recent years. A separate IDC consolidation survey of 400 senior IT executives revealed that 60 percent view consolidation as an important step towards dynamic IT, while 80 percent are actively consolidating.(2)
“The issue isn’t whether or not companies will consolidate. The issue is approach,” said Matthew Eastwood, vice president, IDC. “This research indicates that the sooner companies embrace IT consolidation as a core business strategy, the sooner they will be able to achieve the kind of flexible and dynamic infrastructure that helps solve business problems like increasing revenue and satisfying customers.”
According to the report, several technology and IT management trends will continue to drive growth in IT consolidation, including:
“We are witnessing a new wave of IT consolidation that directly reflects our customers’ desire to leverage IT to compete more effectively,” said Steve Fink, director, IT Consolidation Solutions, HP. “There is a perceptible shift from pure cost-based, hardware-centric efforts to integrated, long-term strategies that realign the IT infrastructure with business goals.”
IT consolidation growth consistent across global regions and vertical industries
The long-term IT consolidation opportunity rests primarily with large companies, but is expected to spike in the small- to medium-size business market in coming years. Growth is expected to accelerate 11.4 percent yearly with small businesses (1-99 employees) and 10.3 percent yearly with medium-size businesses (100-999 employees) as technologies that enable consolidation become more affordable and the recognition of superior return on investment with IT consolidation grows.
North America will lead IT consolidation growth at 7.7 percent yearly due to the prevalence of distributed computing. Growth in Europe, the Middle East and Africa; Asia Pacific; and Latin America will be somewhat slower at 5.7 percent, 5.4 percent and 5.3 percent, respectively.
There is no breakout leader for IT consolidation growth among major vertical industries. Public sector leads with 7.5 percent growth; network service providers follow with 6.9 percent; manufacturing and distribution at 6.2 percent; and financial services industry at 5.5 percent.
The IDC report on IT consolidation was commissioned by HP.
More information about HP’s solutions for IT consolidation is available at www.hp.com/go/itconsolidation.
HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.
(1) IDC, “IT Consolidation: Understanding the Market Opportunity,” May 2006.
(2) IDC, “Server and Storage Consolidation 2004: End-User Summary Report,” March 2004.
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