IT spending on servers will continue to fall for the rest of 2010, the latest report by server analysts TheInfoPro has revealed.
TheInfoPro said that the fall is because of increasingly restrictive IT budgets and the rise of virtualisation.
The report, which was released on 2 August, warns that as businesses continue to tighten their wallets, IT administrators are being forced to perform budget cuts in order to consolidate profits.
The analysts say that this is having a direct impact on server sales and will continue to do so throughout 2010.
Bob Gill, the managing director for server research at TheInfoPro, said: "People keep talking about a server refresh in 2010, that this is a year of recovery. We just don't see it. We are not seeing the turnaround we had expected."
“This is going to be a tough year. A large percentage of people surveyed said they'll spend less in 2010 than they did in 2007. The bottom line is, if they don't have money, they don't have money,” he added.