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Server Sales Plummet in Western Europe, Says Gartner

By ServerWatch Staff (Send Email)
Posted Dec 20, 2001


The server market in Western Europe continues to weaken, according to new market research released by the Gartner Dataquest market-research firm, with economic concerns causing many corporations to put off large server purchases for the near future.

Server shipments in Western Europe fell by 7 percent in Q3 2001 when compared to Q3 2000, falling to 248,000 units, while server revenues declined to $3.26 billion -- a decline of 21 percent in Q3 2001 when compared to Q3 2000. 

The server market in Western Europe continues to weaken, according to new market research released by the Gartner Dataquest market-research firm, with economic concerns causing many corporations to put off large server purchases for the near future.

"Concerns over the economic outlook in Europe continue to negatively impact investments in hardware Revenues were further dampened by intense pricing competition at all levels of the product spectrum," said Karen Benson, principal analyst at Gartner Dataquest, in a press release. "User purchasing patterns changed as they switched to maintaining their installed infrastructure rather than undertaking major new application deployment. This resulted in an increased tendency towards investment in upgrades and towards low-end systems."

The weakest segment of the Western European server economy was RISC/UNIX servers, which typically used as enterprise servers. RISC/UNIX server shipments were down by 36 percent over the previous year, while revenues were down 33 percent from the previous year. Gartner Dataquest attributed this drop to slower spending in the telecommunications and finance fields, which have traditionally been big buyers of RISC/UNIX systems.

Therefore, it's no surprise that vendors specializing in RISC/UNIX systems are suffering in Western Europe: Sun, for instance, suffered a 48 percent drop in shipments in Q3 2001 compared to Q3 2000. Companies that offer low-end Intel-based servers fared comparatively better: Compaq, the leading server vendor in Western Europe, saw its shipments decline only 5 percent from 2000 to 2001, while Dell saw a 25 percent increase in shipments from Q3 2000 to Q3 2001.

In terms of specific countries, server spending declined 15 percent in Germany, 17 percent in France and 42 percent in Great Britain from the previous year.

 

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