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UK's non-x86 server sales dive off cliff, vendors take a hit

Everyone out of pocket - except Dell

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Growth in the UK server market evaporated in Q2 as x86 platform sales dipped and the already dwindling base of non-x86 machines collapsed.

According to abacus stroker IDC, UK factory revenues declined 14 per cent year-on-year to $481m and shipments fell three per cent to 73,000 units.

In terms of market value, x86 sales flatlined at $361m. Overall box sales fell 2 per cent to 72,000 servers as the combined worth of the RISC, EPIC and mainframe segments tumbled 39 per cent to $120m and unit sales dropped 38 per cent to just under 1,000.

All the major vendors apart from Dell reported that revenues and unit shipments had headed south, said Nathaniel Martinez, IDC programme director for European server research.

"Very few large organisations or public sector departments now rely on non-x86 environments because the power and performance of x86 architecture can take on more workloads," he told The Channel.

Market leader HP saw revenues fall 9 per cent, slower than the market average, but IBM turnover was down by a fifth.

"There is a bit of a technology transition taking place, particularly if you look at the mainframe. IBM is at the end of the refresh cycle and with generation 12 out by the end of the year customers were waiting for that," said Martinez.

As has been the case since it acquired Sun in January 2010, Oracle's hardware slide continued, with revenues down 52 per cent.

"Oracle has placed all its bets behind software and engineered appliances, it's just given up on Sparc – at least that's what it looks like," said the IDC man.

Early indications are that Oracle grew engineered appliances revenues by double digits but the box counter said it was still crunching the numbers.

Dell managed to grow revenues 14 per cent compared to Q2 last year as it continues to build on its installed base in the hosting, manufacturing market and the public sector, though IDC was unable at this point to detail why this was. ®

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