IDC: Server market revenue down 7.7 percent in first quarter

May 30, 2013

Server revenue worldwide was down 7.7 percent year-over-year in the first quarter, as weak economic conditions and server consolidation by customers slowed sales, according to research firm IDC. Revenue in the market dropped to $10.9 billion in the quarter, the fifth-time in the last six quarters the server industry saw year-over-year decline. Server shipments also fell in the period by 3.9 percent year-over-year. Customers, both large and small, continue to reduce their total number of servers as a way to improve efficiency, IDC said Wednesday. This led to revenue contraction for every market region in the quarter, except Asia Pacific. During the period, revenue from midrange and high-end systems were down year-over-year by 18.3 percent and 17.1 percent, respectively. Hewlett-Packard rose to the number one position in the server market with 26.9 percent market share, while IBM fell to second place, with a 25.5 percent share. Both companies posted declining year-over-year revenue growth on weak demand for their x86-based server products. To read this article in full or to leave a comment, please click here

Link: http://www.pcworld.com/article/2040281/idc-server-market-revenue-down-77-percent-in-q1.html#tk.rss_all