Feeds

Clouds overshadow 'shrinking' UK server market

Analyst: Vendors face 6pc hardware revenue drop

Mobile application security vulnerability report

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. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.