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Vegas Blade Warning: Page 2 of 3

According to IBM, users can save money on electricity and cooling costs by using low-power processors on certain blades. The hardware vendor also claims that the technology eliminates many of the power-consuming infrastructure components found in 1U rack servers.

IBM recently announced its new BladeCenter-T server in an effort to win market share from Hewlett-Packard Co. (NYSE: HPQ), its bitter rival in this space (see IBM's BladeServer Blitz).

One IT manager at the conference, who asked not to be named, is already using some 96 blades from HP. He says, “We have gone for that route to consolidate a lot of the old Compaq NT and Compaq Windows servers -- the blades are working very nicely.”

The good news for IT managers is that they could be in line for more cash to spend on data center technology next year, with Meta Group predicting budget growth of between 9 and 11 percent in 2004, up from 8.2 percent in 2003. Currently, the data center accounts for between 50 and 75 percent of firms’ IT budgets, according to the analyst firm.

James Rogers, Site Editor, Next-gen Data Center Forum