MEA server revenue up 16%

Blade shipments lead expanding growth of server market in Middle East and Africa region according to IDC

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By  Eliot Beer Published  June 8, 2008

Server revenue grew 16.7% in the Middle East and Africa in 1Q08, according to IDC, which also revealed strong growth in virtualisation and blade shipments.

Overall EMEA server revenue grew 4.8% over the same period a year before, a relatively strong performance which IDC analysts chalked up to interest in virtualisation. Blade shipments grew 53.1%, continuing the strong growth the segment has seen in recent years.

Overall shipments increased 8.7% in the quarter to 680,000 across EMEA, indicating an increasingly competitive server market.

"The server market is now immersed in a period of disruption and is displaying remarkable resilience in both the value and volume areas. Processor technologies and form factors such as multi-core and blade are pushing virtualisation to the forefront, and vendors are playing catch-up to sell solutions to the midmarket that exploit these technologies. Green computing will also be a segment to watch," said Beatriz Valle, research analyst at IDC.

Emerging markets, including Central and Eastern Europe, the Middle East and Africa, gave the strongest performance in the region with double-digit growth, compared to Western European growth of 2.8% compared to last year.

"Revenue in the CEMA region rose in the double digits year on year for the fifth consecutive quarter, reaching a total value of $850 million, and no sign of slowdown is expected in the foreseeable future. In contrast to the more mature markets of Western Europe, this quarter CEMA maintained a stronger appetite for the midrange and volume server, thanks to an increase of new business sites and to the SMB market," said Stefania Lorenz, IDC systems research director for the CEMA region.

In terms of operating systems, Windows performed well, taking 37.4% of the market, suggesting a strong uptake of Windows Server 2008. In the hardware vendor stakes, HP again claimed the top spot with 35% market share and market-beating growth of 5.1%.

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