Feeds

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

Revenues slump 10 per cent to $430m

HP ProLiant Gen8: Integrated lifecycle automation

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. ®

Eight steps to building an HP BladeSystem

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

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
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.