Central and Eastern European server market dips by 13 percent

Summary:IDC figures suggest IT powerhouses in eastern European markets are slowing in server sales, based on weak demand for traditional x86 servers.

Latest IDC figures show server shipments in Central and Eastern Europe (CEE) declined by just shy of 13 percent year-over-year in the first quarter this year to $348 million.

Weak demand for traditional x86 servers along with "precarious" economic conditions were pegged as the contending reasons behind the dip in sales.

Server giants IBM and HP still rely on x86 servers for a portion of their sales.

Shipments in the region, which includes markets such as Estonia, Latvia, and Poland, totaled 70,168 according to research conducted by the firm, representing an 11 percent volume decrease.

But the dip in server sales doesn't come out of nowhere. Businesses are increasingly working towards consolidation, cost reduction, and virtualization, according to IDC CEMA research manager Jiri Helebrand.

Breaking down the numbers, HP held the top spot in the CEE market with 37.2 percent, despite a rapid decline in revenue of both ProLiant and Itanium-based Integrity servers. (HP sued Oracle in 2011 after the software maker said it would no longer support Itanium .)

IBM meanwhile, also seeing double-digit drop across its System x, System z, and Power Systems range, took a slice of 25.7 percent. Dell also secured double-digits on the first quarter, taking in 11.9 percent.

Big Blue was reportedly looking at selling its x86 server business to Lenovo earlier this year. IBM did not comment at the time, but apparently ground to a halt just week later according to The Wall Street Journal.

Topics: Servers, EU

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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