Feeds

IBM gains UK server share

Most fall

  • alert
  • submit to reddit

Security for virtualized datacentres

It has certainly been a tough 12 months for server companies in the UK. Between the start of Q2 2000 and the end of Q1 2001, some $3.55 billion worth of servers were sold in the UK, according to IDC research. For the same period just a year later, ending Q1 2002, that figure had fallen to $2.49 billion, a decline of 29.5 per cent.

Recession-induced spending restrictions and dotcom failures have taken their toll, most notably among the best known vendors, IBM, Compaq, HP, Sun and Dell. These companies - five then, four now - define the UK server market, controlling more than 90.4 per cent of the business, up from 88.7 in the Q2 2000 to Q1 2001 period.

No wonder then that they should equally suffer some of the biggest losses, with HP, Sun, Compaq and Dell, seeing their revenues slide 38.4, 38.1, 32.9 and 26.9 per cent respectively, exceeded only by minority players Groupe Bull's 52.8 and Unisys' 42.4 per cent sales decline, though these two companies' sales are a fraction of the others'.

Of the top-tier companies, IBM did best, declining just 6.3 per cent. It's hard not to imagine Big Blue's big advertising budget playing a part here, not to mention its focus on services as much as hardware sales - IDC's figures measure customer revenues. Clearly the more servers you sell in boom times, the bigger the impact of a downturn, though as the over tier-one and tier-two market share figures show, you're more likely to win the business of those folk who are still buying servers.

Other factors hit the top-tier players, primarily the uncertainty surrounding the HP/Compaq merger and the major management changes Sun was at that point steering towards. IBM's first profit warning in 14 years didn't help much, either.

One company proved resistant to the downturn: Fujitsu Siemens, which saw server revenues rise 82.7 per cent across the two periods measured by IDC. Fujitsu Siemens itself boasts that it's being viewed as a "credible alternative to some of their more established enterprise technology providers". More likely, its success has come about by its shift to emphasise its higher unit cost and even higher value Solaris-based products - like IBM, it's benefiting from selling more hardware capable of pulling in greater service revenue.

And lest Fujitsu Siemens get too cocky, while its European server market share comes in at 9.3 per cent, in the UK, it's less than three per cent of the total. So it has a long way to go before it can be considered at top tier player in the UK.

Looking ahead, the signs are positive, says Thomas Meyer, IDC's European Enterprise Server Group Manager. During Q1, the UK accounted for 21 per cent of the servers sold in Europe, up from 20 per cent in the year ago quarter and Q4 2001's 16 per cent. That suggests a something of a turnaround in the UK's fortunes, but Meyer cautions against excessive optimism: annual growth will at best be in one or two per cent, he believes.

However, that shouldn't dampen the UK market's desire for new technology, and its adoption of server appliances and blades should continue to exceed the European average. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.