The UK server market was the worst hit in Western Europe during the third quarter as the cold wind of recession blew through the economy and froze spending in the vital finance markets.
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Data by market watcher IDC showed that server revenues for the UK declined 10.7% to $614m in the three months, more than twice the market average in the region and server shipments fell 2.2% to around 93,000 units.
"Only projects that yielded a high return on investment for organisations were given the green light, all others were halted," said Nathaniel Martinez, programme director for European Systems Research at IDC.
The recession and its impact on the important finance sector were the primary reasons for the poor performance of the UK said IDC but it suggested that the UK could be the first major economy in the region to exit the downturn.
The x86 segment, which accounted for 96% of all UK server shipments, saw sales fall 0.7% and revenues decline 14%. The value of the UNIX market fell 11%.
All of the major vendors felt the squeeze of the downturn with market leader Hewlett-Packard posting an 8.6% decline in revenues, while IBM, Dell and Sun saw their UK revenues fall 11.9%, 9.1% and 9.3% fall respectively.