Oracle UK server revenues tumble 40% in Q4


Oracle UK server revenues tumble 40% in Q4

Microscope contributor

Oracle risks becoming a bit part player in the in the UK server space after Q4 revenues tumbled 40% in an expanding market, IDC data has revealed.

The latest embarrassment for Oracle's systems business follows hot on the heels of Gartner's EMEA numbers that showed shipments and revenues last quarter collapsed 49% and 42% respectively.

According to market watcher IDC, revenues in the UK server sector jumped 12% in Q4 as customers replaced aging estates.

"There was a lot of refresh activity that was postponed for some time, we see high-end servers starting to make inroads," said Nathaniel Martinez, European programme director for server research.

A breakdown of the individual segments is not yet available but IDC revealed it saw an upswing across the board except in UNIX boxes.

This potentially weakened Oracle's standing in the market as revenues declined 40.6% leaving its market share at 7.9%, compared to the 16.4% held a year earlier.

Dominant HP pushed up revenues 39.7% in the quarter and accounted for more than one in three servers sold in the UK, while IBM grew 7.6%, taking 32.7% of the market.

In third place, Texan giant Dell's revenues leapt nearly 26% and market share increased to 12.7%, while Fujitsu - which placed fifth behind Oracle - saw sales decline of 0.5%, while its market share stood at just 1%.

In the year since Oracle acquired Sun it has run into numerous issues with product lead times, ordering, a longer-than-expected distribution tender process and the loss of soft rebates which Sun had offered to resellers.

Some partners have also bemoaned its decision to effectively exit the volume server market by pricing itself out of the game.

"We can't get a price point in the Intel market to compete with HP or Dell, it is miles off. Oracle is pricing for profit," said one accredited partner.

Oracle refused to comment.

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