IDC: Decline in server market easing

Market watcher said ease in revenue decline suggests server market is making "strong recovery"

The IDC does not expect server revenues to return to pre-recession levels this year

The rate of decline in server market revenues is slowing down across EMEA, according to the IDC.

Figures from the market watcher's latest Quarterly Server Tracker revealed said server revenues peaked at $3.9bn during the fourth quarter and were down 10.3 per cent on last year.

However, compared to Q309 – where server revenues were down 25.7 per cent on Q308 – the fourth quarter performance was proof the market was making a “strong recovery”, said IDC.

"The overall economic environment is picking up after a prolonged recession, " added Nathaniel Martinez, director of IDC European systems and infrastructure solutions.

According to the full year results, server revenues reached $12.8bn in 2009, a decline of 26.4 per on 2008.

Looking ahead, the IDC said it expects revenues to increase by 2.4 per cent this year, but did not expect figures to return to pre-recession levels this year.

The organisation said sales of servers featuring x86 microprocessors will be responsible for driving much of the growth, as virtualisation becomes an “increasingly appealing proposition” for end users.

Beatriz Valle, IDC research analyst for European systems and infrastructures solutions, said: “Hardware based on x86 microprocessors with higher performance and RAS features, coupled with virtualization and software management and automation, will become an increasingly appealing proposition to corporations."