The sluggish economy has taken the wind out of the sails of the server market over the first quarter, with factory revenues dropping by four per cent, according to a report by analyst IDC.
Research found that worldwide revenues declined four per cent, down to $13.3bn from $13.8bn between Q1 2000 and Q1 2001.
The US market took the brunt of the damage, with revenues plummeting 16 per cent to $4.4bn, but a stronger European market helped stem the flow.
"Though the decline in the US market was quite severe, strong growth in other parts of the world, such as Western Europe and Asia/Pacific, kept worldwide damage in check," said Vernon Turner, IDC's vice president of global enterprise server solutions.
IDC said that Western European server factory revenues soared 16 per cent year-on-year in Q1, closely followed by a jump in Asia and the Pacific of 12 per cent.
But Japan was hit by a cutback in government spending, causing revenues to stumble 12 per cent.
One point of note is that the rack-optimised server market turned in a stellar performance. Shipments jumped almost 138 per cent, while the non-rack-optimised server market fell 9 per cent.
"In this economy, companies are hypersensitive about cost-savings, and rack-optimised servers are all about savings," Turner said. "They help organisations save space and reduce their energy consumption."
In terms of performance, IBM is leading the pack with 25 per cent revenue share in the market.
HP took a 16 per cent slice of the pie, and Sun and Compaq took 15.4 per cent and 14.7 per cent respectively.
Dell came in with only 7 per cent, but managed to boost its revenue in the US market with a 12 per cent share.
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