EMEA server market grows for first time since 2011

Shipments and revenues rise in Q2 2014
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Server shipments in Europe, the Middle East and Africa (EMEA) during Q2 2014 grew for the first time in 11 quarters.

Shipments rose by 0.8 per cent, according to analyst Gartner, while revenues reached $3.2 billion - a 3.8 per cent year-on-year increase.

“The second quarter of 2014 marks a key milestone in the server market for many vendors, as both shipments and revenue grew for the first time since this period in 2011,” said Errol Rasit, research director at Gartner.

“Despite the steady improvement in the server market, these positive results highlight the end of a slump, rather than a return to growth. Server providers must continue to ensure that a focus on growth remains a top priority.”

In the first quarter of 2014, HP extended its revenue share lead with 7.3 per cent growth, despite a shipment decline of 5.2 per cent. 

Second-ranked IBM exhibited single digit x86 growth, despite announcing the sale of this business to Lenovo. However, Gartner said that IBM’s top level result suffered because of a cyclical low point in mainframe sales and ongoing weakness in its RISC systems business.

Third-placed Dell’s recent momentum continued with a strong second quarter, as its revenue rose 13.5 per cent, and its shipments grew 5.5 per cent.

“Despite top line positivity, mixed vendor and regional results during the second quarter highlight the ongoing challenges the server market faces in EMEA,” Rasit added.

“Underlying demand is increasingly positive, but server customers are increasingly discerning regarding technology choice and cost. These two opposing factors could limit server market growth in 2014, although we expect continued improvement in the second half of the year.”

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