Western European server sales fell dramatically in the third quarter of this year, but London's financial district is propping up UK sales.
Server sales in Europe fell by 12.4 per cent in the third quarter of 2002, compared to the same period last year, with a fall of seven per cent from the second quarter, according to research from IDC.
But sales dropped just two per cent in the UK. Thomas Meyer, head of IDC's server research in western Europe, explained that the UK has not been hit as hard because of sectors that continue to invest.
"The UK market is more favourable because there are a lot of major banks in the UK and many US companies have European headquarters in the UK," he said.
City-based networking reseller Hydra serves London's financial district, and recently became a Sun Microsystems accredited server reseller to cater for server demand.
Managing director Mark O'Hara maintained that, despite caution in the City, there is still significant demand for IT equipment.
"The UK definitely benefits from having London as the financial capital of Europe," he said. "There is still plenty of activity in the City."
Meyer pointed out that the quarter-on-quarter drop of seven per cent is not the problem because the third quarter is usually lower than the second as a result of the Christmas holiday.
"The decline is actually slowing down because the first quarter fell 23 per cent and the second quarter 17 per cent compared to the same periods in 2001," he explained.
Linux servers recorded positive growth in western Europe, according to the report.
"Linux remains a good alternative for consolidation and is a prominent choice when looking at front-end workloads," said Meyer.
"Dell and Hewlett Packard have put their weight behind Linux, especially high availability clustering."
Windows-based server sales fell by 3.8 per cent and Unix by 11.4 per cent in the region, according to the research.
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