Server revenues and shipments plummeting

Epic_FailThe latest figures from IDC’s Server Tracker reveal black figures for server makers and their partners with revenues and shipments plummeting across the region

Beancounters at IDC said that Server revenues fell by nearly 15 per cent in the most recent quarter and third quarter sales fell by 14.3 per cent year-over-year to $2.6 billion. Only  over 500,000 units were shipped, a decrease of 7.2 per cent year over year.

The non-x86 market declined compared with previous quarters, with vendor revenue down 23.4 per cent compared to the previous year and made just over $314 million.

The biggest decline was seen in standard density optimised server units, which saw a 45.8 per cent decline in revenue. While blade servers did well in terms of revenue and shipment numbers, but they also fell sharply compared to the year before, by 22.2 per cent and 23.5 per cent respectively.

Custom density optimised servers were the only product to experience positive growth in the quarter, with shipments increasing 52.2 per cent and revenues by 15.3 per cent.

Eckhardt Fischer, research analyst, European Infrastructure, IDC said that at a regional level, HPE maintained its position as market leader in Western Europe, with 36.5 per cent market share. Lenovo kicked IBM from the third spot a market share of 7.9 per cent.

IDC blamed political and economic uncertainty, tepid demand typical in 3Q, and fewer large server deals were some of the primary catalysts for downward pressure on regional revenues.

The UK was one of the worst performers over the quarter. IDC said this was due to ongoing uncertainly over the impact of Brexit.