Government IT departments are spending on servers

Earlier this year, an Office of Management and Budget report projected agencies would spend a total of $44.9 million on IT investments in fiscal 2002, up from $44.5 million in 2001.

A new report from Input, a technology research company in Chantilly, Va., says much of that IT spending is on servers.

The administration's emphasis on sharing information and the Defense Department's development of network-centric warfare will 'contribute to the growth of the server segment,' said Payton Smith, manager of public-sector market analysis services at Input.

The biggest increase is in mid-range servers that cost between $10,000 and $30,000 because the federal government is still moving away from mainframe computing, Smith said.

'The government is developing its network infrastructure, and that's largely based on servers,' he said. 'DOD is taking networks and deploying them to the war zones.'

Research from Gartner Inc. of Stamford, Conn., showed that the country's server market grew nearly 10 percent in the second quarter of 2002, from the same time last year.

Overall, federal agencies will increase spending on computer systems at a compound annual growth rate of 9 percent to $18 billion in fiscal 2007, up from $12 billion this year, the Input report said.

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