Large and Small Server Acquisition Growth in Medium Organizations

December, 2003

From 2000 through 2003, the acquisition of new servers has steadily increased in medium-size IT organizations. However, the growth of small servers (under $250K) will begin a slow decline in 2004, while larger server (over $250K) growth will continue to increase. Server growth rates are based on extensive research from Computer Economics’ annual Information Systems Spending study. The study defines medium organizations as those with revenues between $250 million and $750 million.

Despite extensive server consolidation efforts across all industries, small server acquisitions have continued to increase at a significant rate for several years, according to Computer Economics’ annual research. In 2004, this trend is projected to reverse with small server acquisitions dropping on a year over year basis for the first time this millennium in medium organizations.

On the other hand, large server growth (fueled by server consolidations and other factors) will continue to rise next year; with almost 40% of medium-size organizations projecting they will acquire additional platforms. Since 2000 the percentage rate of large server acquisitions in medium organizations has almost doubled, and it is anticipated this growth rate will continue to be strong through 2005.

Figure 1 illustrates server acquisition trends in medium organizations between 2000 and 2003, including Computer Economics’ projection for 2004.
Sever Acquisition Trends In Medium Size Organizations – 2000 through 2004
(Percentage of Organizations Acquiring New Servers)

Medium Organizations

Annual Revenues:

$250M – $750M







Large Servers (Over $250K)






Small Servers (Under $250K)






Figure 1

December 2003

Computer Economics’ annual Information Systems Spending study has assisted hundreds of senior IT managers in making critical budget and technology forecasting decisions for almost 15 years. To order your copy, contact us at 1-800-326-8100, ext. 123.