Server market has reached bottom - IDC

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Server market has reached bottom - IDC

Paul Kunert

IDC reckons the UK server market may have hit rock bottom in the second quarter as the rate of sequential revenue declines slowed.

The value of the market in Q2 collapsed 33% year-on-year to $410m but quarter-on-quarter the fall was less marked at 2.8%. This compares to a 7.4% and 25% sequential drop in the two previous quarters.

"We have probably reached the bottom," Nathaniel Martinez, programme director for European server research said. "The market declined but at a lesser rate than before, there are some green shoots."

The trend is not so straightforward in terms of unit sales; 65k servers were shipped into the UK channel during the three months, representing a drop of 11.8% on Q1, versus a 5.9% dip from Q4 to Q1 and a 16% decline from Q3 to Q4 last year.

Hewlett-Packard server sales went down 30% but it still grabbed 47% of all UK shipments, Dell held onto 30% unit share after a sales drop of 36% and IBM took 10% market share after a 36% decline in sales.

The market is now forecast to improve in the second half of the year but Martinez said: "We will not start to see year-on-year positive growth before Q2 2010."

According to IDC data, the EMEA market was worth $2.9bn in Q2, down 35.8% with less than half a million servers shipped.

Just days ago, the analyst revealed worldwide server revenues had fallen to their lowest level since it began tracking the market in 1996.

This story originally appeared on Microscope.


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