Beancounters at IDC have said that it is a jolly bad time to be trying to flog servers and the numbers are sinking so fast that it is unlikely that the spotty kid with the posh girlfriend will escape before Celine Dion starts to sing.
The latest server sales figures for Europe, Middle East and Africa show that branded servers are losing ground to Far Eastern ODMs.
IDC numbers showed revenues down 3.7 per cent to $3 billion despite. All this happened while there was a modest 0.8 per cent increase in the number of boxes shifted, which means that prices have fallen too.
Eckhardt Fischer, research analyst at IDC, said contract manufacturers, some of whom have launched their own branded gear, are doing well and the HPEs, Dells and Lenovos of the world are suffering.
“This is strongly driven by the continued expansion of original design manufacturers (ODMs) in EMEA, a trend that IDC predicts will continue as mega datacenters and larger enterprises begin to source their hardware directly.”
HPE is still top server seller with 35.4 per cent market share in the second quarter of 2016, up 0.4 per cent. However its year-on-year revenues fell 2.7 per cent.
Dell grew market share to 17.9 per cent and saw revenues creep up by 1.6 per cent.
However Biggish Blue suffered the worst with a 36.9 per cent slump in revenues and a market share which fell to 9.3 per cent. IDC said the fall could largely be blamed on refresh cycles for IBM legacy mainframes last year – this was big enough to hit overall numbers for all vendors.
Oddly the place to try and peddle servers is Russia and the Ukraine where the improved political situation led to increasing IT investment. But the Middle East and Africa saw a decline of 8.5 per cent in revenues because lower oil prices led to cuts in tech investment.