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Server revenues continue to decline across EMEA

The latest figures from IDC's Server Tracker reveal revenues and shipments plummeting across the region

Server revenues fell by nearly 15% in the most recent quarter, according to International Data Corporation’s (IDC) most recent EMEA Server Tracker.

The stats showed that third quarter sales fell by 14.3% year-over-year to $2.6bn. Just over 500,000 units were shipped, a decrease of 7.2% YoY.

The non-x86 market continued to decline compared with previous quarters, with vendor revenue down 23.4% compared o the previous year, at just over $314m.

The biggest decline was seen in standard density optimised server units, which saw a 45.8% decline in revenue. While blade servers enjoyed the highest overall revenue and shipment numbers, they also fell sharply compared to the year before, by 22.2% and 23.5% respectively.

Custom density optimised servers were the only product to experience positive growth in the quarter, with shipments increasing 52.2% and revenues by 15.3%.

“Strong growth was seen by Others in 3Q16, driven mainly by increased traction in the IoT space,” said Eckhardt Fischer, research analyst, European Infrastructure, IDC.

At a regional level, HPE maintained its position as market leader in Western Europe, with 36.5% market share. Lenovo nicked third spot from IBM with a market share of 7.9%.

“Large revenue declines across vendors in Western Europe were driven by a number of factors, rather than a single underlying reason,” explained Michael Ceroici, research analyst, European Infrastructure, IDC. “Political and economic uncertainty, tepid demand typical in 3Q, and fewer large server deals were some of the primary catalysts for downward pressure on regional revenues.”

The UK was one of the worst performers over the quarter. IDC said this was due to ongoing uncertainly over the impact of Brexit.


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