Gartner Says EMEA Server Shipments Market Increased 0.8 Percent in the Second Quarter of 2014 and Revenue Grew 3.8 Percent
EGHAM U.K., 27 August 2014 — 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 percent, according to Gartner, Inc. 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 percent 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,” said 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 percent growth (see Table 1): a strong result given its shipment decline of 5.2 percent (see Table 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 ongoing weakness in its RISC systems business. Third-placed Dell’s recent momentum continued with a strong second quarter, as its revenue increased 13.5 percent, and its shipments grew 5.5 percent.
EMEA: Server Vendor Revenue Estimates, 2Q14 (U.S. Dollars)
|Company||2Q14 Revenue||2Q14 Market Share (%)||2Q13 Revenue||2Q13 Market Share (%)||2Q14-2Q13 Growth (%)|
Source: Gartner (August 2014)
EMEA: Server Vendor Shipments Estimates, 2Q14 (Units)
|Company||2Q14 Shipments||2Q14 Market Share (%)||2Q13 Shipments||2Q13 Market Share (%)||2Q14-2Q13 Growth (%)|
Source: Gartner (August 2014)
“Despite top line positivity, mixed vendor and regional results during the second quarter highlight the ongoing challenges the server market faces in EMEA,” said Mr. 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 percent, while in Western Europe shipments increased 4.8 and 1.3 percent.
In the second quarter of 2014, x86 server revenue increased by 12.7 percent in EMEA. RISC/Itanium UNIX revenue declined 23.6 percent and the “Other CPU” segment revenue decreased 17.8 percent.
“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 ongoing instability,” said Mr. Rasit.
Additional information is available to subscribers of Gartner Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, sub brand, CPU type, CPU group, Max CPU, platform, price band, operating systems and distribution channels.
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