"Customers can buy a single wide, two socket LS41 blade that is upgradable to a four socket blade. This means customers have the choice to pay for the compute power they need now and have an easy upgrade path to greater compute power, using the existing investment they have made."

While IBM continues to dominate market share, competition is certainly heating up.

Last year, Sun rebounded in the server market as sales grew of its Galaxy and Niagara machines.

Sun was the fourth-largest server vendor in revenue worldwide in the third quarter of 2006, behind leader IBM, Hewlett-Packard and Dell Inc., according to figures from analyst firm IDC. Sun had around 10 percent market share to IBM's 33.1 percent.

Blades remain the market segment experiencing the highest growth rates.