Server shipments slip further

Demand for servers in the UK has plummeted

Server shipments and revenues continue to nosedive, according to new figures from IDC.

In its latest EMEA Server Forecast, IDC predicts that server revenues will fall this quarter by 39.3 per cent against the same period last year, dropping to some $2.9bn (£1.7bn). The analyst said that this would be the fourth quarter in a row during which sales had deteriorated, and the worst.

"In 1Q09, every sector of the economy felt the pressure of the global crisis, with most of the countries in Western Europe heading into recession and economies in Eastern Europe often paralysed by the credit freeze," said Nathaniel Martinez, IDC programme director for European Systems and Infrastructure Solutions. "IDC has lowered its forecast expectations to reflect the full impact the deepening recession has had on the server market."

IDC said that while sales were suffering in all geographies, it was the UK that was faring the worst, as sales and shipments slowly dry up.

"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," added Beatriz Valle, research analyst, IDC European Server team.

Some areas are more resilient. The analyst said that x86 systems were performing well as were other lower-priced servers. Overall, IDC expects the market to pick up later this year and predicted that a "modest" recovery would begin in the autumn.