Light at the end of the tunnel for EMEA server market
Server revenue grew annually in Q2 for the first time in more than two years, Gartner claims
The EMEA server market reached "a key milestone" in the second quarter, according to Gartner, which claims the region's server revenue in the last quarter grew for the first time in 10 quarters.
In Q2, the analyst's figures show EMEA server revenue grew 3.8 per cent annually to $3.2bn (£1.93bn), while shipments over the same period grew 0.8 per cent – the first time that figure has grown in 11 quarters.
The growth was driven by strong performance in western Europe, where Q2 revenue and shipments were up annually by 4.8 per cent and 1.3 per cent respectively.
Gartner research director Errol Rasit said the results signified a "key milestone" for the market but warned vendors not to get too excited yet.
"Despite the steady improvement in the server market, these positive results highlight the end of a slump, rather than a return to growth," he said. "Server providers must continue to ensure that a focus on growth remains a top priority.
"Underlying demand is increasingly positive, but server customers are increasingly discerning regarding technology choice and cost. These two opposing factors could limit server market growth in 2014, although we expect continued improvement in the second half of the year."
IDC issued an equally positive report on the server market today, claiming the global market grew 2.5 per cent annually to $12.6bn in the second quarter, and added that the impending end of support for Windows Server 2003 could boost the market further.
"The server market is experiencing the beginning of a cyclical refresh cycle as systems deployed shortly after the financial crisis are retired and replaced," said Matt Eastwood, IDC's general manager for enterprise platforms.
"IDC expects this refresh cycle will continue well into 2015 and be further accelerated by Microsoft's announcement that it is ending support for Windows Server 2003, coupled with Intel's forthcoming release of the Grantley Xeon EP and a significant number of related server platform announcements."