Revenue fromEuropean server sales fell more than 25% in the third quarter but sequentialgrowth from the second quarter has led market research company IDC to suggestthe “worst may be over”.
According to IDC,server revenue in EMEA for the third quarter fell to $2.9bn and just under aquarter less units were shipped in the period. But a sequential rise of 1.9% inrevenue and 8.4% in units was the first in the market since the fourth quarterof last year.
Beatriz Valle, IDC analyst for European Systems and InfrastructuresSolutions, admitted the sequential growth was “very subdued”.
But added thatserver vendors were “hopeful that things will pick up in the fourth quarter,which is traditionally strong in the corporate space due to end-of-year budgetrenewals”.
She stressed that the performance of the market in the fourth quarterwould be “critical to measure where the market is heading in the medium term”.
The sequential rise in revenues and units was also reported inGartner’s recent report on the worldwide server market’s performance in thethird quarter.
HP led the market, despite a 24% fall in revenue with IBM in secondplace. Sun recorded the biggest revenue decline (down nearly 42%) whileFujitsu’s revenue fell 33%.
IDC reported market momentum was in favour of x86 servers with revenuesreaching $1,7bn, rising 16.7% sequentially, compared to $1.2bn for non-x86products, down 14% sequentially.
But there was a huge difference in averagesale price between the two platforms demonstrated by the fact non-x86 serversaccounted for 41% of server revenue but made up only 2.7% of all servers shippedin EMEA.
Nathaniel Martinez, director of IDC European Systems and InfrastructureSolutions, said there had been better than expected performance in the UK,Germany and Spain.
The overall EMEA server market environment remained“challenging” but “platform migrations, consolidation projects and datacenterrejuvenation investments are bringing some activity to the market”.
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