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But revenue decline expected to continue for another year

IDC: Server market slowly recovering

IDC has predicted that server revenue for the current quarter will see a 39.3 per cent year-on-year decline, but that the first ‘green shoots’ will appear in the second half of 2009.

“Revenue declines will gradually soften during the next four quarters,” said IDC’s program director for European Systems and Infrastructure Solutions, Nathaniel Martinez.

“Positive revenue growth will not return to the EMEA server market until the third quarter of 2010, with revenue bottoming out in the first quarter of 2010 at $2.6 billion. IDC believes buyer interest will resume this autumn and that green shoots will be evident from the second half of 2009, albeit modest.”

The decline will be the fourth consecutive quarter to see shrinking revenue and the deepening recession in Europe has forced IDC to lower its forecast expectations.

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