Global Server Market To Grow In 2010

Analyst company IDC in its Quarterly Server Forecast said that server revenues in Europe, Middle-East, and Africa (EMEA) will plummet considerably by around 40 percent in second quarter of the year, as compared to the same period a year back.

This decline will show the drop in revenues for the fourth consecutive quarter and a further plunge in server sales in EMEA region, which has already seen a massive 34.3 percent revenue drop in the first quarter of the year.

The analyst firm further forecasted that the second quarter of the year will mark the maximum year-over-year drop in terms of both revenues and units, with around half-a-million server boxes shipped in the quarter, registering a drop by 30 percent.

However, the analyst company predicted that the plunge won't get any worse than this, as server markets is set to resume growth by the third quarter of the next year, with revenues are expected to bottom out in the first quarter of 2010 at $2.6 billion.

Discussing the further decline in server sales, Beatriz Valle, a research analyst with IDC European Server team, said in a statement, “The server market slowdown is taking different shapes and timeframes depending on the country, with the UK already severely hit, and continental countries following on that path”.

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Our Comments

IDC's predictions are bullish and recovery in Q2 or Q3 2010 is possible but not definitive. Several factors will affect sales in EMEA including the launch of Windows 7 as well as the coming of age of cloud computing which may cause a massive upsurge in the number of servers sold.

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