IDC Sees Server Business Helped by Intel, AMD

"Unlike Gartner, however, IDC gives a specific reason for the turnaround: It believes powerful new processors from Intel (NASDAQ: INTC) and AMD (NYSE: AMD) are the reason for the improved buying outlook.

""Improved" is still a relative term, however. While IDC's Worldwide Quarterly Server Tracker noted that worldwide server revenue declined 17.3 percent year-over-year to $10.4 billion in the third quarter of 2009, while unit sales fell 17.9 percent, unit sales grew a healthy 12.4 percent from Q2 of this year -- the largest sequential unit growth since 2005.

"All three server segments -- low-end/volume, midrange enterprise, and high-end enterprise -- experienced year-over-year revenue decline in the third quarter, but volume servers -- x86 servers under $25,000 -- bounced back nicely in Q3 when compared to Q2."

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