Oracle struggles as server market bounces back


Oracle struggles as server market bounces back

Simon Quicke

Oracle continues to struggle in the European server market as both its revenue and market share slipped in the first quarter.

The vendor's performance was contrary to the overall state of the server market which bounced back to pre-recessionary levels after delivering double digit growth across EMEA for the first time in four years.

Growth at all levels - high-end, mid-market and volume servers - helped drive EMEA server revenue by 10.8% in the first quarter of 2011 to $3.5bn according to the latest review of the market from IDC.

But Oracle was the worst performing vendor with a 19% revenue decline year-on-year and a 1% drop in market share with IBM the strongest performing manufacturer across EMEA in the first quarter enjoying a 32% revenue rise and just shy of 5% more market share compared to its position in 2010.

A revival in the fortunes of the x86 market continued to be the main feature of the server landscape with demand for the technology being fueled by the boom in the demand for cloud services.

"The server market landscape is undergoing a transformation driven by increased demand for datacenter optimization to support virtualization, automation and cloud strategies. Cloud projects are set to profoundly change European server environments, as more customer sites adopt cloud-based infrastructures in 2011," said Nathaniel Martinez, research director in the enterprise server group for IDC EMEA.
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