Feeds

UK server market lifeless: Customers just want fresh, young models

Revenues slump 10 per cent to $430m

Remote control for virtualized desktops

The UK server market was like the surface of the Moon in Q3 - there were no signs of life.

The value of the sector plummeted 10 per cent to $430m in the three months, led by declining legacy non-x86 systems - down 22 per cent to $100m. Even x86 systems experienced a 5 per cent decline - to $330m.

Giorgio Nebuloni, IT market analyst at IDC, said customers were waiting for the primary server vendors to refresh the line-up of big iron machines in Q4 and into the New Year.

"All the major product lines were a bit long in the tooth," he told The Channel, "so customers wanting to refresh were waiting until Q4 or perhaps the first half of 2013".

Big Blue updated the Power System with Power 7 +; HP announced a refresh of Integrity; and Oracle confirmed a new roadmap (PDF) for Sparc.

Nebuloni said most of the customer segments across the UK spent less, though large corporate customers probably did most of the buying.

"We saw market uncertainty overall," he claimed. "The government and mid-market were constrained".

Market leader HP saw sales fall by low single digits, IBM by double digits in the 20-plus percentage range, and Oracle fell even more sharply.

Dell was the only major vendor to post growth up by double digits.

IDC refused to provide specific growth numbers or market share data.

Pent-up demand for refresh should lift the market in Q4, the beancounter predicted.

"But overall the market dynamics should be the same, we don't expect a collapse or a major boost in spending," said Nebuloni.

Some of the major players in the channel - including distie giant Arrow - reckoned a rebound in the server market was on the cards this year but this is now looking less and less likely. ®

Internet Security Threat Report 2014

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Cray-cray Met Office spaffs £97m on VERY AVERAGE HPC box
Only 250th most powerful in the world? Bring back Michael Fish
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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.
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?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.