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Why are the blade and virtualization markets such key growth areas for vendors?

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Why are the blade and virtualization markets such key growth areas for vendors?

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Blades are the fastest and most significant growth area in server computing. Blade systems represent highly advanced, ultra-dense servers that fit on a single card and deliver higher performance, lower power consumption and extraordinary economies of scale for the data center. According to IDC, the blade server market – including related applications — will double in size over the next five years and be a $10 billion marketplace by 2010. The blade space is expected to experience a 350% Compound Annual Growth Rate (CAGR) over the next four years. Virtualization is seen as a key component in the next generation data center. The use of virtualization has matured from simple partitioning and encapsulation to the mobility of virtual machines to improve management and operations of IT environments that range from high availability and disaster recovery to hosted clients and true utility computing. IDC projects the growth for virtualization services for volume servers to experience a phenome

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