Server market resilient - virtualisation spearheads growth

The EMEA server market resisted the tough economic environment well in Q1/08, boosted by a weak dollar/euro exchange rate,according to analyst IDC̵7;s latest Quarterly Server Tracker.

Vendors with a strong x86 portfolio performed best, and EMEA factory revenue reached $4.4bn - up 4.8 per cent over Q1/07. Shipments went up 8.7 per cent to 680,000 in the same period, showing a small imbalance in the ratio of unit to revenue and indicating weaker average prices. Central and Eastern Europe and the Middle East and Africa were the fastest-growing regions, with revenue up 11.7 per cent and 16.4 per cent respectively.

Western Europe also performed well, IDC reports, growing revenue 2.8 per cent over the same period of the previous year. The strong results indicate that virtualisation is acting as a driving force in the market, the market-watcher avers, as end users discover its possibilities in management and automation.

The technology is being used to tackle server sprawl and has particular relevance in the fields of high availability and disaster recovery for SMBs, a segment that server vendors are fiercely aiming at.

"The server market is immersed in a period of disruption, and is displaying remarkable resilience in both the value and volume areas,̶1; says IDC research analyst Beatriz Valle. ̶0;Processor technologies and form factors such as multicore and blade are pushing virtualisation to the forefront, and vendors are playing catch-up to sell solutions to the midmarket that exploit these technologies.̶1;

Green computing will also be a segment to watch, Valle adds.  

Further information:

Image: IDC research analyst Beatriz Valle: the server market is immersed in a period of disruption

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