Server Sales Take a Dip Amidst Recession

Server Sales Take a Dip Amidst Recession

According to research firm IDC, server sales throughout the globe took a quick drop on December 2008 as corporate buyers tightened their belts to survive the recession. IDC recorded a 14 percent cutback of US$13.5 billion (£9.5 billion) in the fourth quarter of last year.


Server shipment crumbled 12 percent in the same period and the worlwide server revenue tailed off  3.3% to $53.3 billion. On the contrary, annual shipment increased by 2 percent which is attributed to massive price cuts on server units.



Matthew Eastwood, group vice president of IDC's Enterprise Platforms Group, said, "The server market experienced its sharpest decline since the middle of the dot-com slowdown nearly seven years ago. All server vendors, geographies, and technology segments were impacted significantly as the global recession gained momentum and market conditions weakened as the quarter progressed."



The recent financial crisis is indeed taking businesses by a storm and the server market isn't any safer. What's pretty disturbing is IDC doesn't see any fix to a clearly stricken global market.



Eastwood added, "It now appears the slowdown will worsen before any improvement is seen in late 2009 or early 2010. "In the near term, IT customers will increasingly look for IT optimisation projects with strong ROI potential and extend virtualisation, consolidation, and migration programs in order to lower capital and operational costs while improving efficiencies."