Brazilian server market sees uplift

Sales revenue of X86 servers has grown by 12 percent in the first quarter of 2017 - but predictions for the year are dire, says IDC.
Written by Angelica Mari, Contributing Writer

Sales of X86 servers saw a 12 percent revenue increase in the first quarter of 2017 - but predictions for the entire year are not so positive, according to research by analyst firm IDC.

Revenue over the period reached $116 million, against the $104 million recorded in the first quarter of 2016.

"The x86 server vendors adopted a more aggressive behavior in early 2017, with many promotional campaigns. In addition, there was still a stock surplus of 2016, which influenced the revenue increase and even the number of units sold," says Luis Altamirano, research analyst at IDC Brazil.

In terms of units sold, the analyst notes an increase of 15 percent in the first quarter of this year, with 25,688 items sold.

Despite the growth seen in the first quarter, IDC Brasil expects a 14 percent drop in revenue from x86 servers for the whole of 2017.

On the other hand, the analyst predicts a 6 percent increase in units sold. According to IDC, server revenue generated in 2016 reached $492 million, mainly due to the large-size global deals that impacted Brazil.

However, this is not likely to happen again and revenue should not surpass $425 million for the entire year, as there will not be a great deal of investment in high performance servers. Instead, manufacturers should focus on tower servers going forward.

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