Feeds

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

Revenues slump 10 per cent to $430m

Beginner's guide to SSL certificates

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. ®

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.