A new report from research group IDC indicates server revenue increased by 11 percent during the second quarter, which is a promising sign for the cloud computing industry.

The 11 percent rise in revenue during the second quarter led the server market to be valued at $10.9 billion.

“This is the fourth-consecutive quarter of improving server market demand and the fastest quarterly server revenue growth IDC has reported in more than five years," said Matt Eastwood, research group vice president of enterprise platforms at the company.

Server sales are rebounding from the economic downturn, indicating a positive sign for cloud computing applications. As the economy recovers, many companies have formed new cost-effective spending habits, which has led to them focusing their attention on flexible IT solutions.

“The uptick in the midrange server market shows there was pent-up demand for more scalable servers, through replacement for aging servers and workload consolidation,” said Jean Bozman, research vice president of enterprise servers at IDC.

An increasing number of organizations are outsourcing their online backup and disaster recovery needs to cloud providers, who have the server capabilities to handle those services more efficiently. Using the cloud for backup solutions allows companies to reduce their expenses and become less dependent on on-premise equipment.ADNFCR-2553-ID-19932504-ADNFCR