IDC: Server spending tanks in Q2, but worst is over

Although global server revenue is expected to fall 29.6 percent in second quarter, IDC sees some signs of stabilization.
Written by Larry Dignan, Contributor

Global server revenue is expected to fall 29.6 percent in the second quarter to US$10.6 billion for the fourth consecutive year-over-year decline, according to IDC.

However, there are some signs of stabilization.

IDC reports that the second quarter fall will be the worst in the current business cycle and predicts "the rate of market decline improves significantly in the second half of 2009 and early 2010".

Simply put, the server sales picture will get less worse.

For 2009, server sales are expected to fall 22.1 percent compared to 2008.

In a statement, IDC said:

IDC believes many IT users will begin making strategic compute platform decisions during the remainder of 2009 in advance of improving business conditions and server demand in 2010.

It should be noted that even though IDC sees improvement, server revenue in 2013 still won't come close to the 2008 tally.

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