Revenue falls by 34.3 per cent, the fastest annual decline on record

EMEA server sales decline

The EMEA server market has seen revenue shrink by 34.3 per cent in Q1 to $2.9 billion, with shipments dropping below the half million mark.

Market researcher IDC says that this is the fastest year-on-year decline that it has seen since its records began in 1996.

Unlike the rest of the world, where enterprise server sales are showing a slower decline, in EMEA shrinking revenue has affected enterprise and standard sales equally.

“After negatively affecting server spending in the finance and automotive sectors, the economic downturn spread to all economic segments at the start of 2009, leading to recessionary environments in many countries in EMEA,” said IDC’s program director for European Systems and Infrastructure solutions Nathaniel Martinez.

“IDC believes that server spending cuts are a short-term response to degrading economic conditions, but in the long-term, organizations will re-initiate IT infrastructure investment to lower overall cost structure and operate at a higher level of efficiency through virtualization, automation, and power-saving technologies.”

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