MEA x86 server market sees double-digit slump: IDC

Segment also suffers a 2% year-on-year value fall in Q3

Tags: International Data Corporation (IDC) (www.idc.com)United Arab Emirates
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MEA x86 server market sees double-digit slump: IDC The MEA x86 server market suffered a 10.5% dip in volume for Q3 2012.
By  Stephen McBride Published  December 9, 2012

The x86 server market in the Middle East and Africa (MEA) experienced a sharp year-on-year decline in the third quarter of 2012, according to International Data Corporation (IDC).

Citing its latest EMEA Quarterly Server Tracker, the research firm today announced that the MEA x86 server market suffered a 10.5% dip in volume for Q3 2012 and a 2% fall in value when compared with Q3 2011.

IDC observed a similar trend in the GCC, with the regional x86 server market declining 9% in volume over the same period, although there was a 10% increase in revenue year on year. Qatar registered the highest rate of growth among these countries, increasing 88% in volume and 60% in value.

"Large deals were closed in Qatar's education and banking sectors during Q3 2012 and these contributed significantly to the country's strong growth," said Zeeshan Gaya, research manager for servers and systems at IDC Middle East, Africa, and Turkey.

"Meanwhile, key projects in verticals such as oil and gas, government, and telecomunications helped catalyse growth in the GCC region as a whole."

The Saudi Arabian market was the worst performer of the quarter, suffering a major year-on-year decline in volume of 45% as a result of delays to key projects and the shuffling of budgets in preparation for the new fiscal year. This was in stark contrast to the UAE market, which showed a 16% year-on-year increase in shipments on the back of increased consumption in the telecommunications and government sectors.

The North African region (comprising Morocco, Algeria, and Tunisia) experienced a slowdown in server shipments, with volume dipping 14% year on year in Q3 2012 owing to instability in the market caused by political and social unrest. In South Africa, the main driver for server shipments was demand from service providers, the government, and the finance sector, although this could not prevent server shipments slumping 16.1% year on year.

"Converged infrastructure solutions continue to show growth in the South African market as increased competition among vendors makes converged infrastructure a viable option for the market," said Gaya.

"Server uptake in the SMB space continues to gather pace as such organisations are the late deployers of server virtualisation and IT infrastructure renewals."

The overall negative trend was observed across almost all form factors in the MEA region during Q3 2012. Towers took the biggest hit, recording a 14.3% decline in shipments year on year, followed by rack-optimised servers and blades, which suffered decreases in volume of 10.1% and 6.4%, respectively. Contrary to this trend, however, shipments of density-optimised servers were up by an impressive 26.2% year on year across the MEA region.

Eight- and four-socket servers took a hit in the third quarter of the year, recording year-on-year volume declines of 33% and 14.5%, respectively. Two-socket servers remain the dominant socket capability, comprising more than half of the MEA market with 69.3% unit share.

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