"Quarterly sales of servers running Linux have topped US$1 billion for the first time. According to analyst company IDC, sales during the third quarter of 2004 hit $1.06 billion, more than nine percent of the market and an increase of 42.6 percent from the previous year.
The server market as a whole grew by 5.5 percent from the year-earlier figures, an indication that IT spending is on the rise from the conservative levels that IDC has tracked over the last few years, said Vernon Turner, group vice president and general manager of enterprise computing with IDC. "We see server spending continuing to be very strong, but more importantly, it's stronger than the rate of inflation," he said. "CEOs are finally saying, 'Lets get beyond normal replacement cycle.'"