Global server revenues in decline

Worldwide server revenues have declined 4% in the past year, according to the latest report from IDC.

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By  Matthew Southwell Published  June 17, 2001

Worldwide server revenues have declined 4% in the past year, according to the latest report from IDC. Revenues are down to $13.3 billion for the first quarter of 2001, compared to the $13.8 billion generated in the same period last year. The US market has been the hardest hit, as revenues have plummeted 16% from $5.2 billion to $4.4 billion.

Despite declining revenues in the overall server market, the rack-optimised segment has bucked the trend with shipments jumping 138%, igniting revenue growth of 87%.

"In this economy, companies are hypersensitive about cost-savings, and rack-optimised servers are all about savings," said Vernon Turner, vice president, global enterprise server solutions, IDC. "They help organisations save space and reduce their energy consumption," he added.

In terms of vendor performance, IBM and Dell were the only top-five players to increase their revenues in the worldwide market, with 13% and 21% jumps respectively, whilst Hewlett-Packard, Sun Microsystems, and Compaq suffered a decline.

Outside of the US, the server market appears stronger as IDC reports growth in Western Europe and the Asia/Pacific regions. According to Turner, it is this growth that has “kept worldwide damage in check."

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