Feeds

Clouds overshadow 'shrinking' UK server market

Analyst: Vendors face 6pc hardware revenue drop

Beginner's guide to SSL certificates

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. ®

Security for virtualized datacentres

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
'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
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.