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UK server market has collapsed, says IDC

The UK server market collapsed in the final quarter of 2008 as the recession, foreign exchange translations and the impact of virtualisation contributed to the contraction of revenues and shipments.

According to data by IDC, total revenues declined 27% year-on-year and unit sales dropped 23%, making the UK the worst performing market across Western Europe.

Nathaniel Martinez, IDC programme director for European server research, said the UK market was hit hard by the recession. It is also heavily dependent on the financial services sector that was worst hit by the credit crunch.

"The IT industry in the UK is heavily dependent on the financial services sector, it has been impacted by the currency effect on the pound, which has lost a lot of ground to the dollar and translating into price increases," he said.

A version of this story originally appeared on MicroScope.co.uk.


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