In Europe, the Middle East and Africa (EMEA), server shipments in the second quarter of 2014 grew for the first time in 11 quarters, by 0,8%, according to Gartner. Server revenue also grew in the second consecutive quarter of 2014 after 10 previous quarters of consecutive revenue declines. Total server revenue reached $3,2-billion, a 3,8% year-over-year increase.
“The second quarter of 2014 marks a key milestone in the server market for many vendors, as both shipments and revenue grew for the first time since this period in 2011,” SAYS Errol Rasit, research director at Gartner.
“Despite the steady improvement in the server market, these positive results highlight the end of a slump, rather than a return to growth. Server providers must continue to ensure that a focus on growth remains a top priority.”
In the first quarter of 2014, HP extended its revenue share lead with 7,3% growth: a strong result given its shipment decline of 5,2%. The EMEA market does not enjoy the same hyperscale demand as North America, but HP was able to benefit from strong multi-node server sales to bolster its growth.
Second-ranked IBM exhibited single digit x86 growth, despite announcing the divestment of this business. IBM’s top level result suffered because of a cyclical low point in mainframe sales and on-going weakness in its RISC systems business. Third-placed Dell’s recent momentum continued with a strong second quarter, as its revenue increased 13,5%, and its shipments grew 5,5.
“Despite top line positivity, mixed vendor and regional results during the second quarter highlight the on-going challenges the server market faces in EMEA,” SAYS Rasit. “Underlying demand is increasingly positive, but server customers are increasingly discerning regarding technology choice and cost. These two opposing factors could limit server market growth in 2014, although we expect continued improvement in the second half of the year.”
From a regional perspective, only Eastern Europe recorded revenue and shipment declines of 1.6 and 5.6 percent. Server revenue and shipments in the Middle East and Africa region grew by 2,5% and 6%, while in Western Europe shipments increased 4,8% and 1,3%.
In the second quarter of 2014, x86 server revenue increased by 12,7% in EMEA. RISC/Itanium UNIX revenue declined 23,6% and the “Other CPU” segment revenue decreased 17,8%.
“It’s not surprising to see the x86 segment driving growth in EMEA, however double digit declines in the RISC and Itanium Unix segments were weaker than expected, highlighting on-going instability,” says Rasit.
