Published monthly, February 2004

 

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Server and Operating System Plans Among Midsize Businesses


Gartner conducted telephone- and Web-based surveys with CIOs and IT Managers in 2003 that focused on the server requirements, priorities and preferences of North American midsize businesses (MSBs). The following findings and recommendations are drawn from this study.

On average, MSBs operate 19 to 22 servers in their environments, with more than 90 percent of the servers deployed in uniprocessor or two-processor configurations. Server appliances account for less than 5 percent of the servers in the midsize enterprise, and the primary functions being served by them are security such as firewalls, and storage such as network-attached storage. In the near future, midsize businesses will continue to deploy general-purpose servers to perform relatively simple functions because the hardware is inexpensive and software vendors continue to recommend the use of dedicated servers for their applications.

The most common and numerous servers in MSBs were application, file/print, database, Web and e-mail in that order.

Operating Systems
Not surprisingly, Windows is the dominant operating system (OS) in MSB server infrastructures, though many CIOs continue to inquire about alternatives as a result of their frustration with Microsoft’s costly upgrades and the growing “mind share” of Linux in the market. Despite the strength of Windows, there is still a pretty strong showing of other OSes used by MSBs. For example, nearly 30 percent have Unix and Linux deployed somewhere in their enterprise. That said, they are only being used on 5 percent and 7 percent of servers, respectively and usually deployed in appliances providing network functions, file and print services, Web front-end applications or computational server farms. However, MSBs stated that they will increasingly consider and evaluate Linux and leverage it for negotiating strength as an enterprise operating system in new systems.

Table 1
OSes Deployed by Company Size (Percent)

 
100-499 Employees
500-999 Employees
Windows 2000
77
87
Windows NT
59
53
Windows, other
2
11
Unix
25
36
Linux
27
29
Netware
9
31
OS/400
5
11
Others
9
7
Note: Multiple responses allowed.
Source: Gartner, Inc., July 2003

MSB Plans to Purchase Servers in 2004
Midsize businesses, on average, stated that they plan to increase their server population by 8 percent to 10 percent in 2004, and MSBs with 500-999 employees had the highest percentage of companies that cited plans to purchase new servers in 2004. Server vendors should recognize that MSBs are more apt to purchase hardware to support new business solutions. For example, the affordability of certain software (such as portals and middleware) to the midmarket over the year could spur server sales.

Additional server purchasing plans and preferences include:

Despite the hype around server blades, the overall blade market will remain small through 2007 compared with the mainstream IA-32 server market.
In sharp contrast with the plans of larger enterprises, only 16 percent of MSBs cited plans to consolidate servers during the next 12 months.
MSBs purchase servers both offline and online, with 56 percent stating that they purchase their servers directly from the manufacturer. Some MSBs prefer the speed and convenience of direct server purchases, while others need the support provided by resellers.

Price and price/performance continue to be key metrics that drive server-purchasing decisions. However, in the current market, price is often not enough of a differentiator between vendors to be the deciding factor. When this is the case, MSBs turn to additional criteria to drive the decision process, such as:

Warranty – The cost and length of a standard warranty is often an important factor.
Investment protection – Although statistics show that most customers do not actually upgrade or trade in their hardware, customers respond to the investment protection message well.
Service/repair – The ability of a vendor to respond to a problem is, of course, a key concern, however MSBs have different preferences on how quickly response is needed and the nature of the response. Because service/repair is difficult to evaluate during a selection process, MSBs expect to see industry metrics that show a vendor’s strength in this area.
Ease of doing business – The way a vendor interfaces with MSBs during the sales, procurement and support phases can be a deciding factor. Vendors that are perceived as “easy to work with” often have an advantage. Peer feedback is very influential in this area.
Factory integration capabilities – Many MSBs don’t have enough staff to handle server deployments, so vendors that can assist in deployment efforts may be viewed more favorably than those that can’t. This may range from basics such as image burning to higher levels for integration such as testing servers and external storage together.
Professional services – When MSBs enter more complex computing solutions, such as fail-over clusters, they most often turn to the vendor for help as they may lack core technical expertise. The more services a vendor can offer directly or through its channel, the more comfortable an MSB feels.
Server manageability – Vendors that provide “quick-start” mechanisms to initially configure servers, easy-to-use diagnostic tools and remote management technology can often win deals based on this and other types of server manageability technology.

Discuss 2004 purchasing plans with CIOs and IT Directors from midsize businesses at Midsize Enterprise Summit. . Click here for event details.

Reference
User Wants and Needs
SMB Server and Storage Preferences and Investment Plans
Publication Date: August 18, 2003
Authors: J. Browning, J. Enck and A. Couture, Gartner, Inc.

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Source: SMB Server and Storage Preferences and Investment Plans, August 18, 2003, Gartner, Inc.


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