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Europe enjoys server market surge

by Robert Jaques

29 Aug 2003

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The server market in Europe, the Middle East and Africa appears to be on the road to recovery, enjoying double-digit sales growth between this April and June.

Research by analyst Gartner reported second quarter server shipments of 373,000 units, an increase of 21 per cent on the same period last year. Revenues totalled $3.7bn (£2.3bn).

"A number of factors contributed to the strong shipment growth," said Karen Benson, research vice president at Gartner, in a statement.

"Pent-up demand for upgrades and replacements within the installed base, as well as the availability of new technologies, were the main drivers. But the weakness of the dollar was a significant factor in boosting demand.

"The market has finally seen revenue growth following several quarters of decline, but much of this is driven by the low end of the market. Spending remains weak at the high end, which highlights the caution still prevalent among users."

Gartner reported that four of the top five vendors in the market recorded shipment growth rates of more than 20 per cent.

IBM, which managed 40 per cent growth on the same period last year, topped the list of improvers. Big Blue's figures were attributed to the success of the xSeries line as well as the continuing strength of its pSeries range.

Hewlett Packard maintained its spot at the top in terms of units shipped, achieving a comparable growth rate of 21 per cent.

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