EMEA server market hits a rut

HP was the only vendor to grow EMEA sales in Q3

EMEA server revenues have declined for the first time in nine quarters, as cash-strapped end users put large Unix purchases on hold.

According to Gartner, server revenues fell 5.4 per cent year on year in the third quarter of 2008. It is the first annual decline since the second quarter of 2006.

Robust sales in the x86 segment ensured total server volumes in the region grew 5.8 per cent on the same period last year.

However, RISC and Itanium Unix revenues declined by 11.3 per cent, with unit shipments falling back 20.1 per cent. Sun Microsystems was particularly badly hit as its revenues from the segment – which is considered to be its core business – plunged 20.1 per cent.

As the only major vendor to experience revenue growth, HP extended its lead in EMEA in the quarter from 37.1 to 39.5 per cent. Second-placed IBM saw revenues fall 5.1 per cent, while third-placed Sun’s sales nose-dived 17.6 per cent.

HP also tightened its stranglehold on server volumes, shipping 258,382 units in EMEA during the quarter – more than closest competitors Dell, IBM and FSC put together.

The picture was repeated at a global level: despite shipments rising 4.4 per cent, revenues dropped back 5.4 per cent.

Jeffrey Hewitt, research vice president at Gartner, said: “Server shipments grew in the third quarter, but the spectre of constrained economies and tightened credit was felt in the revenue area.

“What we have seen is larger system purchases in the Unix area put in check. At the same time x86 servers were able to maintain some shipment momentum, but lower overall average x86 server selling prices resulted in a drop in revenue in the quarter for this server type as well.”