Blade Server Residual Value Forecast, January 2007

This IDC study provides residual value forecasts for tier 1 vendors' blade servers. The study explains the current market conditions that are affecting the value of used hardware on the secondary market and what future technological changes will further impact these values. We explore the factors impacting this portion of the server market and the technology changes expected over the next several years. This information helps those who invest in hardware to assess their risk and provides guidance on the amount of residual value that is expected to be realized at the end of lease term.

"For equipment lessors, blade architectures are counterintuitively a throwback to the proprietary days of computing. Operating systems and applications are open, but investments in intelligent chassis and advanced networking architectures commit end-user customers to their blade system vendor, thus protecting investments by lessening the propensity for forklift upgrades and shifts in hardware providers." ? Jennifer Koppy, research manager, Technology Valuation Service