HP building
HP was the only vendor to grow EMEA sales in Q3

EMEA server market hits a rut

Market shrinks for first time since 2006 as Unix sales falter, but HP enjoys strong quarter

Written by Doug Woodburn

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.”

  • Have your say
  • Send to a friend
  • Share
  • Print

reader comments

related articles

Financial Results

HP lifts lid on Q4 fortunes

Storage, notebooks and services among hotspots for IT one-stop-shop in three months to 31 October 25 Nov 2008

 

PC vendors set for price war

UK PC market shows healthy growth but Gartner warns of shrinking margins and predicts vendor consolidation 12 Nov 2008

FSC to raise UK prices

Vendor says series of price hikes starting from 1 November will allow resellers to boost top and bottom lines 30 Oct 2008

6,000 Sun staff feel the heat

Sun Microsystems announces restructuring plans including global workforce reduction of up to 18 per cent 17 Nov 2008

Server sales are latest casualty of recession

Sharp decline in Unix sales blamed for steep fall in shipments, but HP proves it can hold its own 13 Mar 2009

Server shipments buck economic downturn

HP sets the pace, while Dell expands market share 22 Aug 2008

IBM top in Q2 server revenue

Big Blue and Dell strengthen position as HP and Sun lose ground in global server revenue 22 Aug 2008

latest news

Lenovo targets HP partner base

Vendor looks to expand reach and looks to rivals' channels to achieve its aims 03 Jul 2009

VMware rakes in 700 service provider partners

Virtualisation giant claims VSPP programme has gained significant traction in short space of time 03 Jul 2009

Compellent hits out at debate snub

Storage vendor writes open letter to prime minister in protest at being left out of £1bn stimulus debate 03 Jul 2009

poll

Feeling secure?

Feeling secure?

Is offering standalone security still a viable business model?

View poll results

boxing ring

CRN Fight Night 2009 bouts now LIVE!

It is time to relive the craziness that was CRN Fight Night 2009

Eddie Pacey and Nitin Joshi

In The Studio with CRN: Credit in the Channel

CRN Editor Sara Yirrell chats to two of the industry's credit stalwarts - Nitin Joshi and Eddie Pacey

events

East Sussex golf resort and spa

CRN Golf Challenge 2009

Join us for the premier golf event in the channel calendar

CRN Channel Conference 2009 logo

CRN Channel Conference 2009

A one-day conference dedicated to the needs of businesses in the UK technology channel

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

White papers

Search white papers

Top categories

Primary Navigation