Global server market declines

IDC reports 5.2 per cent year on year shrinkage of revenue
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Market research firm IDC has posted its global server results for the third quarter of 2008 and reports the largest quarterly revenue decline since 2002.

According to IDC’s Worldwide Quarterly Server Tracker, global server market revenue stood at $12.6 billion, which represents a 5.2 per cent year-on-year drop.

Declining spending has seen the competition in this area increase as companies lower prices to stay ahead, for example, Microsoft Windows server maintained its market share of 40.8 per cent but reported revenue losses of 5.1 per cent.

Only IBM’s new Z servers showed any growth for the period, increasing revenue by 24.8 per cent.

“The server market experienced significant deceleration in the third quarter with particular weakness in September,” said Matt Eastwood, group vice president of Enterprise Platforms at IDC. “The slow down impacted a wide range of traditional server technologies with improved demand for blades and IBM System Z notable exceptions.”

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