Server shipments on downhill path in EMEA

gartner_logoAccording to Gartner, Europe, the Middle East and Africa (EMEA) region witnessed a decrease shipments by 5.9 percent in the second quarter as compared to the same period last year, while the revenue totaled $3.1 billion in the quarter, a decline of 4.6 percent from the same quarter last year.

“Demand for servers in EMEA remained constrained in the second quarter,” said Adrian O’Connell, research director at Gartner. All three EMEA sub-regions saw server revenue decrease in the second quarter of 2013. In Western Europe, revenue declined 1.6 percent; in Eastern Europe it fell 17.9 percent and the Middle East and Africa region decreased 9 percent.

“This was the seventh consecutive quarter for shipment decline and the eighth consecutive quarter for revenue decline, showing an even more sustained period of weakness than the one we saw during the economic downturn that began in 2008,” said Mr. O’Connell.

In terms of vendor performances, HP lead the pack both in terms of shipments and revenue even though it lost its marketshare. Whereas, Dell and Fujitsu remained the only two vendors from the top five to show revenue growth. The EMEA market lacks the hyperscale segment growth that other regions benefit from. This means that vendors in the region are more exposed to the global weakness in enterprise sales.

“Weak enterprise demand, combined with consolidation and platform migration, continued to dampen the EMEA server market. In addition to weak demand, established vendors are increasingly challenged by relatively-new vendors such as Cisco, Asia/Pacific-based suppliers such as Lenovo and Huawei, and original design manufacturers selling directly to large end-users.” said Mr. O’Connell.

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