Tech earnings have been rolling in the past few months and things are looking good. On track for growth, leaders in the IT space are on the move, ordering servers, processors and networking equipment to support the worldwide demand for information and expansion of the Digital Universe. Rackspace Hosting is building out, the Planet is adding machines, Intel server chip revenue up 46%, IBM server sales up 30% and Google reporting $476 million in CAPEX. Also cloud computing looks to be defining this sector in the move toward Warehouse-Scale Machines. Manuel D. Medina of Terremark refers to what we’re seeing as a “major tectonic movement.”
There’s still some distance to go, as mobile matures and more meta-apps begin to sift through the explosion of data points currently being uploaded to the cloud, there will be even more pressure on the demand side for elastic infrastructure which can scale all these new services emerging from the fray. Check out the article.
Spending Soars on Internet’s Plumbing
By DON CLARK And BEN WORTHEN
Behind the recovery in business spending is a surge in purchases of the computers that form the backbone of the Internet, as companies scramble to meet growing demand for video and other Web-based services.
The need to reach customers and employees over the Web is driving furious demand for server systems, the machines that power corporate computer rooms.
Many companies are stocking up on new servers, which typically cost a few thousand dollars apiece, to replace older machines with more energy efficient models or systems with more powerful processors.
Also, an increasing number of businesses are turning to outsourcing companies, which manage computer rooms for customers and in many cases are sharply stepping up purchases of servers to keep up with rising demand.
We’ve been buying thousands of computers this year,” says Doug Erwin, chief executive of ThePlanet.com Internet Services Inc., a Houston-based company that runs data centers to offer computing services. ThePlanet says it now owns about 50,000 Dell Inc. servers.
International Business Machines Corp., one of the biggest vendors of servers, said Tuesday that sales of industry-standard servers jumped 30% in the second quarter, after rising 36% in the first quarter.
The buying activity became apparent last week, when Intel Corp. said quarterly revenue from its unit selling server chips rose 42% from a year earlier, while shipments driven by Internet-related companies’ purchases nearly tripled.
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