Second quarter server revenues slide in EMEA

The EMEA server market saw revenues decline for the third quarter in a row despite year-on-year shipment growth of 7.7% during the second quarter of 2006 according to the numbercrunchers at IDC. Total unit shipments hit 563,000 units generating vendor revenues of US$3.86 billion.

  • E-Mail
By  Stuart Wilson Published  August 30, 2006

The Europe, Middle East and Africa (EMEA) server market saw revenues decline for the third quarter in a row despite year-on-year shipment growth of 7.7% during the second quarter of 2006 according to the numbercrunchers at IDC. Total unit shipments hit 563,000 units generating vendor revenues of US$3.86 billion — a drop of 2.3%. The Middle East and Africa (MEA) region did manage positive revenue growth up 1.2% as unit shipments climbed a healthy 16%. Central and Eastern Europe (CEE) also performed strongly with shipments growing 17.5% year-on-year. However, this significant rise in units shipped only equated to a revenue rise of 1.9% as average selling prices continued to decline. Western Europe suffered most with revenues sliding 3% year-on-year. Stefania Lorenz, program manager at IDC CEMA, said: “Purchases are being made in the public and private sectors, and spending is being fueled by economic stability, as well as the inflow of foreign direct investment and the booming SMB segment, most of which relies on very basic infrastructures. This combination will continue to accelerate growth in CEE.” “For Western Europe, shipments reached 434,000 units, a 5.3% annual growth, a slower rate than in previous quarters, but a positive indication that prices are not plummeting as once feared and the erosion of margins is being temporarily alleviated by RISC Unix-based upgrades in the high-end space,” said Beatriz Valle, research analyst at IDC. Shipments of volume servers increased 9% year-on-year in EMEA while shipments in the midrange and high-end space declined 19% and 31% respectively. The strong momentum for Linux servers continues with revenues soaring 34% year-on-year to US$460m. In comparison Windows servers slipped 2% to US$1.299 billion while Unix tumbled 9% to US$1.421 billion. HP continued to lead the vendor league table for EMEA, selling close to 225,000 units during the second quarter representing revenue of US$1.265 billion. HP boosted its market share one point to 33% driven by a strong quarter for its Proliant offering and growth of its Itanium-based server line. IBM maintained its 30% market share and held on to second spot in the rankings. Sun Microsystems emerged as the growth start of the second quarter boosting its sales 8% year-on-year to US$555m due mainly to the introduction of new Opteron and SPARC-based servers. Dell — the only pure x86 player in the top five vendors — picked up fourth spot, increasing its sales 1% year-on-year. Fujitsu Siemens had a tough time as its server revenues in EMEA tumbled 14% year-on-year to US$326m.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code