Technology news and Jobs arrow VIRTUALISATION arrow Server revenue decline worst in 13 years
Server revenue decline worst in 13 years E-mail
by Peter Dinham   
Tuesday, 02 June 2009
There’s been a dramatic fall in server revenues across European, Middle East and African (EMEA) markets, with IDC recording its fastest year-on-year decline in revenues since it started recording them 13 years.
 

According to IDC, EMEA server revenues dropped by 34.3 percent in the first quarter this year with the value of the market now at $2.9 billion.  This was the fastest year-on-year decline in revenues since 1996, with IDC also reporting server shipments declining 29.6 percent to below the half-million mark.

Nathaniel Martinez, IDC program director for European systems and infrastructure solutions, says both the industry standard and the enterprise segments declined by around 34% year on year, and, he adds, that the pace of revenue decline was very similar in the x86 and non-x86 areas, differing from the worldwide server market trend, which showed slower declines in the enterprise, or non-x86, server segment, and particularly mainframes.

According to Martinez, midrange servers were the best-performing server class, with a decline of 27.8% in 1Q09 over 1Q08, well below the market average.

However, he reports that high-end servers recorded the steepest decline - 40.4% annually - while volume servers were down 34.2% over the year-ago period.

“These figures reflected the decline in CISC revenue, and the stabilisation of the RISC space. By sub-region, countries in the Central and Eastern European area suffered the worst annual revenue declines, with sales down 43.7% - an unusual development in a geography that has been growing at a faster pace than Western Europe, which is a mature market in comparison.
 
“It was the first time that CEE declined faster than WE since 2003.”
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