GEC NEWS WIREMarket Revenue Grew 3.8 Percent in Q2
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: a strong result given its shipment decline of 5.2 percent. 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.
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.
