Nehalem Launch Triggers Outpouring Of Server Offerings

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The release of Intel's Nehalem Xeon 5500 processor Monday triggered the corresponding release of one of the largest number of new servers ever to be introduced on the same day.

Hewlett-Packard, IBM, Dell, Lenovo, Supermicro and several custom systems builders each unveiled multiple servers in blade, rack-mount and tower versions in a bid to capitalize on what Intel is calling the biggest server launch ever.

The server vendors agreed that the launch is a major event, and said that they are releasing to market more new server models than they have ever done at one time.

However, the launch comes during troubled times in the server market.

Analyst firm IDC late last month said worldwide server shipments in the fourth quarter of 2008 fell 12 percent compared with the same period one year ago, leading to a worldwide fall in server revenue of 14 percent.

Customers are slower in their acquisition of servers under the current economic situation, and require a clear ROI for their investments, said Arlin Sorensen, president of Heartland Technology Solutions, a Harlan, Iowa-based Hewlett-Packard solution provider.

The new Nehalem servers offer that ROI, Sorenson said.

"More processing power, less power and HVAC requirements, scalability using virtualization -- our customers will get more bang for their buck than ever," he said. "Plus we will be able to service them at an even higher level with the new tools that have been added to the mix. It is a win for the customer and HTS as their partner because we can address their pain points while giving them more server and support! We are excited about this release and how it will help us re-engage with our customers to discuss their pain with an even better story as a solution."

Leigh Carpenter, a solutions architect at Nth Generation, a San Diego-based solution provider and HP partner, said that the new Nehalem servers she has tested offer incredible performance for server virtualization because of their huge memory capacities.

She also said that customers will find the new servers a good way to actually save money.

"Companies with less money to spend on servers can look to the new HP models," she said. With two 10-Gbit Ethernet cards on each blade, they don't need as many switches in their blade chassis."

Next: Tier-one And Custom Server Vendors Roll Out The Servers

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