Worldwide server sales fall by 5.6% says IDC

According to the analyst group, Western Europe was the worst performing region recording total sales of US$2,939 million — a decline of 12.4% on a year-on-year basis.

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By  Greg Wilson Published  December 4, 2002

Worldwide server sales have dropped 5.6% in the third quarter of 2002. According to statistics compiled by IDC, Western Europe was the worst performing region recording total sales of US$2,939 million — a decline of 12.4% on a year-on-year basis and a 7% sequential decline against the same period last year.

“This demonstrates that there continue to be challenges in the region,” says Thomas Meyer, head of IDC’s server research in Western Europe.

“However, it is normal to see the third quarter come in below the second, as this is a time when many businesses in Europe enjoy lengthy vacations,” he adds.

Server sales results would be even worse if looked at on a constant dollar basis, given the strong growth of the euro against the US dollar over the last year.

On a unit basis, the market slightly grew — the 260,064 unit shipments showing a 1.7% increase on the previous year, making the average value of all servers shipped in the quarter just US$11,300.

Demand for Linux-based servers showed a positive increase of 3.1% year-on-year — the only operating system type to show growth. Windows-based servers showed a 3.8% decline against 3Q01, while Unix servers showed an 11.4% decline.

On a unit basis, IA32-based machines represented 87.2% of shipments, although their lower average cost in comparison with RISC and CISC based servers meant that they represented only 39.6% of market spending.

The blade form-factor again showed growth this quarter of 26.6% with respect to units. This growth was driven by the current 1-way offerings, designed for front-tier web-based applications. IDC is predicting accelerated growth as new vendors enter the market and introduced 2-way blades capable of running enterprise applications.

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