June 13, 2001

Commentary: Digesting the server glut

Author: JT Smith

The Meta Group on CNet has predictions about slump in server sales. "Recent reports of slowing server sales are actually a trailing
indicator for the technology market.

The leading indicator was the reduction in IT budgets and general
delay in the release of new projects that has characterized user
planning and spending for the last two quarters. We expect the server market slump to continue
through the end of 2001 as the market digests the infrastructure growth of 1999-2000 and projects
continue to be delayed."


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