Feeds

Clouds overshadow 'shrinking' UK server market

Analyst: Vendors face 6pc hardware revenue drop

Top 5 reasons to deploy VMware with Tegile

The UK server market is forecast to shrink next year as the corporate refresh nears it end of cycle and more SMEs turn to cloud computing instead of buying hardware.

This is the view of the landscape in 2012 according to the number-crunchers at IDC, which downgraded previous estimates of a 2.1 per cent revenue decline for the year to a steeper drop of 6.1 per cent.

The weak growth forecasts for the Western world from the International Monetary Fund combined with dynamics in the x86 space make for some "pretty depressing market conditions", said Nathaniel Martinez, director at IDC.

"SMBs are moving a lot faster to the cloud than we expected as they don't have access to capital to invest in IT infrastructures so some of the server spend is being displaced," he told El Reg.

The replacement cycle occurring in the enterprise market, especially among financial institutions that opened up their wallets at the end of 2009 following the recession, "is pretty much coming to an end", the analyst added.

Martinez said that mid-sized and large corporate organisations are seeing a good ROI on virtualisation and many who had invested in high-spec systems were adding virtual servers instead of buying physical machines.

"[These factors] are bound to have an impact on server hardware revenues," he said. ®

Internet Security Threat Report 2014

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

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.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.