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Q2 server sales down about 8 percent in the U.K.

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September 8, 2014

Second quarter server sales were down about 8.1 percent in the United Kingdom, but not every hardware vendor had a rough time.

Sales were down to $460 million, polarized by a 25 percent increase in x86 systems to $380 million.

Several large HPC deals in the higher education segment, combined with higher spending from financial institutions and more demand from local service providers fuelled x86 sales, said market research firm IDC.

“The non-86 segment still remains very volatile,” said IDC's Giorgio Nebuloni, who added that a strong comparison period a year ago – when IBM signed off some very large deals – didn’t help to flatter the most recent data.

Again this time, HP outpaced the market, growing by more than 21 percent to grab a 38.2 percent share of the server market.

Fourth-place Oracle grew 12 percent and trailing in fifth position, Cisco's sales went up more than 50 percent, something that took the industry a bit off guard.

On the flip side of the coin, second place Dell was down in the low double digits to a 15.4 percent market share, followed by IBM that simply haemorrhaged its market share as sales dropped by more than 50 percent based on a year ago when it was the market revenue leader in the United Kingdom.

The Q1 uplift in server sales proved to be an all-too-brief respite for anyone selling servers to pay attention to, and Q2 is just a reminder of that.

IDC forecasts similarly slim pickings for the remainder of 2014, predicting revenue growth of one to two percent.

Nevertheless, growth is growth, and these days not much more can be asked of the mature and uncertain hardware infrastructure market.

Source: IDC Market Research.

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