Server revenues drop in EMEA as economic downturn hits vendors hard

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HP sees noticeable decline

Server revenues continue to decline in EMEA as the harsh economic climate impacts sales.

The latest stats from IDC show that factory revenues in the EMEA server market dropped 11.9 percent year on year during the first quarter of the year, hitting $3.1 billion.  Shipments dropped 3.8 percent on an annual basis.

On a quarter to quarter basis the situation was even worse, with volume and value sales down 13.1 percent and 23.9 percent respectively.

According to research director in the Enterprise Server Group for IDC EMEA, Nathaniel Martinez, the declines were in part due to the tough economic situation, with vendors taking a battering.

“EMEA server vendors in 1Q12 continued to face up to a number of market challenges, compounded by a very difficult economic environment,” Martinez said.

“Overall, the EMEA server market in 1Q12 was in line with IDC expectations and presented a very mixed picture in terms of server spending, with countries across the region showing important discrepancies in terms of trends.”

Hewlett Packard was one vendor which saw substantial decline in revenues on a yearly basis, though still claimed top spot in the sector. Despite a 19.1 percent decline HP still  led the way with 41.6 percent market share, ahead of Dell which saw a 17.8 percent decline, holding onto 28.2 percent market share.

Top 5 Corporate Vendors, EMEA Server Factory Revenue, First Quarter of 2012 (1Q12) ($M)

Vendor 1Q12 Server Revenue 1Q12 Market Share 1Q11 Server Revenue 1Q11 Market Share 1Q12/1Q11 Revenue Growth
HP $1,193.27 38.2% $1,474.50 41.6% -19.1%
IBM $819.49 26.3% $997.02 28.2% -17.8%
Dell $436.56 14.0% $410.50 11.6% 6.3%
Oracle $226.23 7.2% $241.18 6.8% -6.2%
Fujitsu $182.41 5.8% $196.88 5.6% -7.4%
Other $263.17 8.4% $220.72 6.2% 19.2%
Total market $3,121.12 100.0% $3,540.81 100.0% -11.9%



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