x86 servers show signs of strain from commodisation in EMEA

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x86 servers show signs of strain from commodisation in EMEA

Simon Quicke

The EMEA server market has grown in the second quarter fuelled by activity in central and Eastern Europe.

According to IDC's EMEA Quarterly Server Tracker, factory revenue in the EMEA server market grew 8.7% year on year to $ 4.4bn in Q2. Shipments increased by 12.4% to reach close to 700,000 with 95.5% of that total being x86 boxes.

Although the main growth was in Central and Eastern Europe, with revenues up 17.8%, the western European markets still managed to produce growth of 6.8%.

But there was an imbalance between unit and revenue growth indicating that the x86 server market is feeling the pressures of commoditisation and price drops.

Earlier this week figures from IDC on the worldwide x86 market showed that the segment had produced its lowest growth levels for six years.

In reference to the EMEA figures Nathaniel Martinez, director of European enterprise servers at IDC, said that there was a refresh cycle that saw companies move away from older legacy systems but that was "expected to moderate".

He added that technologies including virtualisation, blade and multicore would continue to grow.

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