Biggest sales drop since records began rounds off four contracting quarters

Server sales stung by worst quarter ever

Server goods have suffered their worst fall in sales since records began, amid fears that the sector is failing to recover from the global recession.

Though many components of the IT sector appear to be taking short steps towards recovery, server items have recorded sales declines in four successive quarters, the most recent being the heaviest yet.

According to analyst group IDC, shipments of server-related goods fell by 30.4 percent.

This drop pulled revenues down to $9.8 billion, the lowest figure since IDC began tracking server shipments in 1995.

“Over the past four quarters, the worldwide server market has experienced significant revenue deceleration in all geographic regions as the economic recession has deepened," said IDC’s Matt Eastwood.

Though server sales fell across the board, little had changed in regards to the diminished market share. IBM retains a majority with a 34.5 per cent slice, HP holds 28.5 per cent, followed by Dell (12.4%) and Sun (10%).

However, according to the IDC, there is light at the end of the tunnel.

"It is clear that the worldwide server installed base is aging rapidly,” said Eastwood.

“In the weeks and months ahead, IDC believes that IT customers around the globe will begin to focus on the future once again, making strategic compute platform decisions for the next business cycle, and driving more predictable server demand as market conditions stabilise in the second half of 2009.”

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