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25 Jun 2009
IDC does not expect the EMEA server market to bottom out until the third quarter of 2010 and has downgraded its expectations for the current quarter.
The market watcher expects Q2 2009 to mark the peak of annual server declines in the region in both revenue and unit terms. Revenues for the three months to June are set to plummet 39 per cent year on year to $2.9bn, while shipments will fall by almost 30 per cent to below half a million.
For the whole of 2009, EMEA server revenues are expected to drop to $12.4bn, down from $18.5bn a year earlier. In 2010 the market will fall again to $12.1bn before inching up to $12.2bn in 2011, $12.4bn in 2012 and $12.8bn in 2013.
“IDC has lowered its forecast expectations to reflect the full impact the deepening recession has had on the server market,” confirmed Nathaniel Martinez, IDC program director for European Systems and Infrastructure Solutions.
Revenue declines will soften over the next four quarters with the market set to bottom out at $2.6bn in Q1 2010. Green shoots will be evident from the second half of next year, IDC predicted.
The x86 segment is currently faring better than the rest of the market thanks to continuing demand for blade servers and consolidated infrastructures.
But the research giant added that the non-x86 segment would make a “decisive comeback” in the second half of 2010 due to pent up demand for scale-up refreshment projects.
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