Server sales in western Europe declined in the third quarter of 2001 with revenues falling to $3bn compared to $3.81bn for the same period last year, according to research from IDC.
The market research firm reported that, despite a 21 per cent decline the region has suffered, it has performed better than the rest of the world where sales have dropped by 30 per cent.
"People are still arguing about whether there has been a slow down or a full blown recession in Europe," said Thomas Meyer, an analyst at IDC.
He explained that US-based server vendors have been hit hardest by the slowdown. "Fujitsu Siemens has done relatively well and grown its market share by two per cent. It has benefited from the fact that it is the only true European player and only sells in European countries," he said.
The vendor increased its market share to 10.6 per cent from 8.6 per cent in the same period last year.
Darron Antill, managing director at specialist server reseller Ultima, said: "Fujitsu Siemens is up and coming in this market and they are courting us and working with us. It is still a long way behind the others [in market share] but I think it now has the right management and channel strategy to drive forward."
Ultima works with Hewlett Packard, IBM, Compaq and Fujitsu Siemens. "If anything we are seeing growth and we have had our best year ever," said Antill.
Meyer stressed that server vendors must address specific European needs more effectively if they are to build market share. He believes some vendors have made mistakes.
"Compaq has come out and said that it has a direct strategy but this is not appropriate for Europe. Dell has built its share of units sold but has had little success in revenue terms because it has pushed prices down," he said.
But Antill argued that support from the US-based vendors has not reduced and Ultima has not felt the impact of the slowdown.
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