European server sales have dropped to the lowest level ever recorded by analyst IDC.
Research and analyst firm IDC has reported the lowest levels of server revenue it has ever seen in the second quarter of 2009.
According to IDC’s Quarterly Server Tracker for Europe, Middle East and Africa (EMEA), server vendor revenue in the second quarter of 2009 reached $2.9bn (£1.8bn), 35.8 per cent down on the same period last year, with the number of servers shipped dropping below half a million, 33.9 per cent down on 2008.
"Conditions remain tough because customers have been limiting IT spending to the bare essentials to keep their IT infrastructure running, and this has negatively impacted hardware investment," said IDC analyst for European Systems and Infrastructures Solutions Beatriz Valle.
"IDC sees signs of stabilisation this quarter, including modest growth in average selling prices and quasi-flat quarter-on-quarter revenue decline."
Virtualisation on x86 systems was seen as the growth engine by server vendors hoping for a traditionally strong fourth quarter, according to the research. But IDC pointed out that it would take much longer than that for EMEA server revenue to match the peak of $5.4bn (£3.3bn) seen in the fourth quarter of 2007.
IDC confirmed the market trend towards x86 servers, which outperformed non-x86 servers, taking 52.3 per cent of total revenue, declining 33 per cent from last year. This compares with a steeper 38.6 per cent decline for non-x86 systems.
IDC's European Systems and Infrastructure Solutions research analyst Giorgio Nebuloni said that blade systems are expected to be less affected by the economic downturn, due to increased consolidation within budget-constrained companies.
"[Vendors are] escalating the number of integrated, richly configured solution blocks based on a scalable layer of blade servers, in an attempt to decommoditise the upper end of the x86 business," he said.
Windows and Linux-based systems showed similar annual declines of about 32 per cent, but Windows was the only main operating system whose market share increased both quarterly and annually. Operating systems running on non-x86 hardware were worst hit, with Unix system revenue below $1bn (£611m) for the second consecutive quarter, with revenue down 38.7 per cent annually.
HP was EMEA's top server vendor for the sixth consecutive quarter, with ProLiant server sales worth around $700m (£428m), 72 per cent of its revenue, up from 66.7 per cent in the same quarter of 2008.
In second place was IBM continuing the transition from System p to Power systems, and growing its market share 1.4 per cent. Power systems revenue edged closer to $400m (£244m), accounting for 41.9 per cent of the vendor’s total. However, mainframe revenue dropped by nearly half, down 46.7 per cent annually.
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
Monday, September 14, 2009
Europe Lags behind US in Tech Spending
The rate of recovery in tech spending in the US is going to be twice the rate of Western and Central Europe next year as America steps out of recession quicker.
Europe has been experiencing a deep recession and with the problems originating in the US those factors have pointed to the recovery starting on the other side of the Atlantic first before spreading to the UK and the rest of Europe.
According to Forrester research the US will see a 8% increase in technology purchases next year compared to 4% in Western and Central Europe with €297bn being spent this year in Europe with the major countries all seeing drops ranging for IT goods and services from 12% here in Britain to 3% in France and Germany in 2009.
In the Forrester report, European IT market outlook 2009 to 2010, the analyst Andrew Barels, said that the market for IT goods and services would decline in Europe by 6.3% this year and would be slow to recover: "In both regards it will lag behind the US tech market, which will have a smaller drop in 2009 and stronger growth in 2010."
"The main reason? The European economic recession has turned ouyt to be deeper than the US recession, with Europe's downturn starting later and probably lasting into 2010 . All categories of IT purchases will be down, with computer equipment and communications equipment being especially weak," he stated in the report.
There have already been sings that the US economy has stablised with plenty of CEOs and financial officers making that call in statements accompanying recent financial results. But in Europe only Germany and France have officially recently come out of recession with the UK still lagging behind.
Europe has been experiencing a deep recession and with the problems originating in the US those factors have pointed to the recovery starting on the other side of the Atlantic first before spreading to the UK and the rest of Europe.
According to Forrester research the US will see a 8% increase in technology purchases next year compared to 4% in Western and Central Europe with €297bn being spent this year in Europe with the major countries all seeing drops ranging for IT goods and services from 12% here in Britain to 3% in France and Germany in 2009.
In the Forrester report, European IT market outlook 2009 to 2010, the analyst Andrew Barels, said that the market for IT goods and services would decline in Europe by 6.3% this year and would be slow to recover: "In both regards it will lag behind the US tech market, which will have a smaller drop in 2009 and stronger growth in 2010."
"The main reason? The European economic recession has turned ouyt to be deeper than the US recession, with Europe's downturn starting later and probably lasting into 2010 . All categories of IT purchases will be down, with computer equipment and communications equipment being especially weak," he stated in the report.
There have already been sings that the US economy has stablised with plenty of CEOs and financial officers making that call in statements accompanying recent financial results. But in Europe only Germany and France have officially recently come out of recession with the UK still lagging behind.
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