IDC predicts that one in three servers will be blades by 2010.
The research firm's server market analyst Chris Ward said it's no longer just about acquiring another box to run more workloads.
Ward said blades provide more simplicity and efficiency compared to rack and tower environments which equals better infrastructure management.
"With enhanced features of energy consumption, rapid deployment and simplified management, blades satisfy customer needs for lowering operational costs and reduce the physical complexity in managing multiple servers," he said.
IBM Australia/New Zealand system x and bladecentre brand manager Dean Janjic said there has been rapid adoption of blade servers in the local market as customers move off older technology and transition to a new platform.