Sales for x86 servers have dropped as more buyers are waiting for quad core processors.

According to analyst company Gartner, buyers are investing in virtualization technology in the short term to avoid having to buy servers which will be out of date when quad cores are released.

Of the x86 servers that were sold, most were sold by HP which sold 2.2 million units. IBM made more money from selling servers and made $16.9 billion, up 1.7 percent from the previous year.
 
Virtualization software increases the utilization rate for servers, so companies do not need to buy so many. You can find more details here.