UK 'worst performer' as EMEA server sales crash

Q3 sales sink 14 per cent due partly to lack of large server deals, according to IDC

The UK was one of the worst performers in an EMEA server market that sagged 14 per cent in value in Q3, according to IDC.

Vendor revenues in the region tumbled from $3.07bn (£2.47bn) to $2.62bn year on year in the three months ending 31 October, according to the market watcher, with market leader HPE enduring a 17 per cent fall.

The largest sub-category, blade servers, was among the worst hit, with revenue and shipments down 22.2 per cent and 23.5 per cent respectively.

The UK, alongside Ireland, was fingered as the quarter's worst performer, which IDC put partly down to uncertainty over the impact of Brexit on financial and security regulations, as well as delays in major infrastructure shipments.

"Large revenue declines across vendors in Western Europe were driven by a number of factors, rather than a single underlying reason. Political and economic uncertainty, tepid demand typical in Q3, and fewer large server deals were some of the primary catalysts for downward pressure on regional revenues," said Michael Ceroici, research analyst, European Infrastructure at IDC.

The biggest decline in the market by product was registered by standard-density optimised servers, which saw a 46 per cent revenue decline. Custom-density optimised servers were the only model with positive growth in the quarter, with revenues up 15.3 per cent, IDC said.

HPE remained the runaway leader in Q3, despite seeing its share slip from 37.6 to 36.5 points. Dell's share rose from 16.4 to 17 points as its shipments declined 11.3 per cent, while third-placed Lenovo's market share fell fractionally to 8.2 per cent.

"Strong growth was seen by Others in 3Q16, driven mainly by increased traction in the IoT space," said Eckhardt Fischer, research analyst, European Infrastructure at IDC.