Servers (market of EMEA)

Segments of the market

On TAdviser articles on different segments of the market of the computer equipment are regularly updated:

Шаблон:Subject Computers

2015: 2.6 million pieces for $13.2 billion (+3%) are sold

In March, 2016 analysts of International Data Corporation (IDC) published results of a research of the server market in EMEA region. Its volume hardly increased partly because of bad demand in Russia.

According to estimates of specialists for 2015, consolidated revenues of vendors from sales of servers in the countries of Europe, the Middle East and Africa were $13.2 billion that is 3% more, than the previous year. Supplies of equipment almost did not change and remained at the level of 2.6 million pieces.

Differences in dynamics indicators in pieces and money are connected with the high dollar exchange rate because of which goods in local currencies rose in price and also with the growing sales of high-performance expensive solutions.

Because of Russia sales of servers nearly fell in EMEA

The analyst of IDC Andreas of Ol (Andreas Olah) says that the negative impact of a currency factor weakens that led to "some normalization" of a x86 servers segment in EMEA. In the fourth quarter 2015 of sale of these systems reached record $3.1 billion that is 2.2% more than an indicator of year prescription.

This rise happened in many respects thanks to construction of new hyper scalable data centers by a number of large cloud providers. Besides, the growing demand for the powerful servers used for accomplishment of crucial tasks urges on further increase in the prices in the market, especially in a segment a blade systems, marks out Ol.

In the research IDC it is said that sales of servers in the countries of Central and Eastern Europe continue to fall. In October-December, 2015 recession was measured by 4.6%. The Russian market of servers still is in decline, and in Poland, the Czech Republic and Romania, on the contrary, the rise measured by two-digit growth rates that was promoted by improvement of an economic situation in the countries and new projects in the field of deliveries of high-performance solutions is observed.^[1]

2012

The second quarter: Only in Russia the market of the EMEA servers reached a positive

Revenue of producers of servers in EMEA region in the second quarter decreased 2012 by 11.6% in comparison with the same period of 2011, according to IDC EMEA Server Revenue Down^[2], and reached $3092.4 million. Deliveries of servers reached of 514.3 thousand pieces of equipment that is 5.3% less in annual terms. In quarter comparison in relation to the first three months 2012 the market decreased in volume by 7.6%, and in terms of money – for 0.9%.

X86 segment of servers remained the largest segment of the server market of EMEA, $2.2 billion revenue of producers or 72.2% were the share of it. Sales not of x86 of servers did not exceed a mark of $1 billion, revenue in this segment made $860.3 million that is 27.5% lower in annual terms. In the first quarter in annual comparison this segment lost even more – 28.7%.

In Western Europe growth of x86 segment of servers became the main trend, $1.6 billion or 72.3% of revenue of producers in comparison with 65.3% in the second quarter were the share 2011 of it. 27.7% of the market were the share of not x86 servers or $633.6 million Western Europe among the regions entering into EMEA showed the maximum decrease by 15.4% in annual terms, the region of Eastern and Central Europe – only for 6.9%, the Middle East and Africa separately – for 4.9%.

Separately in CEMA region (Central and Eastern Europe, the Middle East and Africa) the market showed even small positive result – revenue of producers in the second quarter grew 2012 by 1.4% to $808.6 million. In Central and Eastern Europe in a year revenue of producers increased by 6.9% to $456 million, in many respects thanks to steady demand from providers of data centers and the financial sector of Russia. Separately in Russia sales grew by 15.9% in annual comparison whereas to Poland and the Czech Republic sales went to minus.

Separately in the Middle East and in Africa revenue of producers of servers in the second quarter made 2012 $352.6 million that is 4.9% less in comparison with the same period of 2011.

Top of 5 vendors of industrial servers in EMEA, 2 quarter 2012, $ one million

IDC, 2012

The HP company from market shares of 38.9% and revenue of $1.2 billion remained the leader vendry EMEA in the region. Then in decreasing order of shares follow IBM (27.2%, $841 million), Dell (13.4%, $413 million), Oracle (6.7%, $206.3 million), Fujitsu (5%, $154.8 million). Vendors 8.9% or $275.3 million revenue were the share of others.

First quarter

The market of servers in the region of EMEA decreased in volume of in the first quarter 2012 by 11.9% in comparison with the same period the previous year and reached $3.1 billion, according to IDC. Deliveries of servers for the specified period reached 556.9 thousand units that it is less in annual terms for 3.8%.

In quarter expression in comparison with the last trimester of 2011 the market "sank" even more seriously – for 23.9% in monetary and for 13.1% in quantitative measurement. And it is the second quarter on server roar of the region of EMEA when analysts fix so serious regress. Besides, for the first time from the third quarter 2009 decrease it is expressed by two-digit indicators.

The main positive energy is concentrated on the market in x86 segment of servers, 73% of the market were the share of it or $2.2 billion the Segment of standard industrial servers decreased in volume more than by 3% in both expressions. Sales of servers not of x86 of architecture appeared lower than $1 billion: they made $841.9 million and decreased by 28.7% in a year.

In the market of Western Europe in the first quarter 2012 lion share of sales had on h86 servers: $1.6 billion or 71.8% of local market in comparison with 65.4% the previous year. In CEMA region (Central and Eastern Europe, the Middle East and Africa) of analytics of IDC recorded the first negative quarter: in comparison with the beginning of 2011 the sales volume of servers decreased here by 3.7% to $752.96 million.

At the same time, positive loudspeakers are fixed in Central and Eastern Europe. Moreover, in the report of IDC it is said that exclusively high sales of servers in Russia allowed the server market in this region will increase in terms of money by 4% to $397.72 million.

Whereas separately in the Middle East and Africa sales of servers in annual terms decreased by 11% to $355.25 million. And among the Middle Eastern and African countries of the loudspeaker it is not uniform: for example, Saudi Arabia and Israel are among the countries with positive dynamics, and Turkey and South Africa - show two-digit lowering.

Top of 5 vendors in the market of servers of the region of EMEA in 1 quarter 2012, $ one million

Source: IDC, June, 2012

Among vendors in EMEA region as of the first quarter 2012 continued to be in the lead HP, however, for the last year to it it was necessary to renounce several percent of the share, in general having reserved more than a third of the market (more than 38%). Further in decreasing order of a share in the market IBM, Dell, Oracle, Fujitsu follow.

2011

The fourth quarter: results of year

According to data of the research IDC (EMEA Quarterly Server Tracker), revenue of producers in the server market of EMEA reached $4.1 billion in the fourth quarter 2011, having decreased in annual terms by 6.7%. Deliveries reached 640.6 thousand that is 2.1% less, than for the same period the previous year. In comparison with the third quarter 2011 results, however, were much more optimistic: revenue of producers grew by 27.8%.

In general for 2011 revenue of producers of servers in EMEA increased by 3.4% to $14.3 billion, in many respects thanks to good sales in x86 segment which in 2011 grew by 7% in annual terms.

The segment of servers x86 remains to the largest in the market: in the fourth quarter 2011 $2.7 billion or 66.6% of the market fell on it. It is the twelfth quarter in a row when sales of x86 exceed sales of servers of other architecture. Demand for blades in EMEA remained at the high level for the fourth quarter so revenue of vendors in this segment grew by 5% to $770 million.

The market of Western Europe which generated $2 billion profit or 65.7% of all profit of producers of servers in EMEA region became the largest regional market based on the fourth quarter. Only 34.3% of the Western European market in reporting period were the share of sales not of-x86 servers. The share of RISC Unix of servers, for comparison, in Western Europe since 2008 decreased from 24% to 13.6%.

In CEMA region (Central and East Europe, the Middle East and Africa) the server market in the fourth quarter in annual terms grew 2011 by only 0.3% to $1.05 billion. In Central and Eastern Europe (CEE) for the specified quarter of sale of servers grew by 5.2% in annual terms and reached $622.2 million. In the Middle East and in Africa (MEA) they, on the contrary, decreased by 6.1% in annual terms and reached $424.97 million.

According to experts of IDC, the market of CEE remained afloat in many respects thanks to progress of specifically Russian server market which ate high activity in the public sector. For comparison, sales of servers in the Czech Republic and Poland for the same period showed record two-digit decrease. In MEA region Israel became the only country which showed positive dynamics. Sales even in the markets of such traditionally solvent countries as Turkey, Saudi Arabia and the UAE decreased.

Shares of vendors in the server market of EMEA at the end of 2011

Source: IDC, February, 2012 

As for shares of vendors, based on 2011 in general the five of the largest suppliers remained quite traditional and in decreasing order the share looks as follows: HP, IBM, Dell, Oracle and Fujitsu. In total 92.4% of all server market of EMEA were the share of the first five. The greatest gain in a year showed Dell (plus 12.4%), the worst – Fujitsu whose sales decreased by 6.4% in terms of money.

Third quarter

In the third quarter 2011 the market of servers in EMEA region (Europe, the Middle East and Africa) showed weak growth. Total amount of revenue was $3.2 billion that is 0.6% higher than the same period of last year, at the supply rate of 546,883 units that is 1.0% less than the corresponding period of last year. Profitability in the territory of Western Europe was lower than EMEA, average on region, with sales reduction of servers for 1.4% year on year.

Told was expressed in reduction of a share of income of the market of Western Europe where sales made 74.8% of total amount - the smallest percentage value from the moment of the beginning of monitoring of this region by IDC company. According to analysts of IDC, present exchange rate fluctuations and reduction in cost of euro in relation to dollar, in particular, had a considerable impact on profitability of sales of servers in Western Europe.

In the largest European economies decrease in efficiency of sales was observed. In France and Great Britain rise for 1.6% and 2.1% respectively, and in Germany decline in income for 3.6% year on year was observed.

Segments of the market

Servers of x86 were the main engine of the market, and revenue from their sales reached $2.3 billion, is 3.5% more year on year with an inexpressive growth of supply rate (to 0.7%). 98.3% of all servers delivered on the market - x86 systems. Income from sale of servers of other architecture decreased year on year by 6.5%, without having reached also $1 billion ($875 million). Deliveries dropped by 13.9% and exceeded 9 thousand pieces only a little.

Scalable servers are servers to which IDC appropriated determination of "hyper-scale servers", intended for a narrow segment of the market of high-performance computing and installation in DPC, in the third quarter 2011 generated $53.2 million income, having shown growth of deliveries to 20.9% year on year and in absolute digits of 15176 pieces. Servers of this kind remain rather small segment of the market in EMEA region where generate about 1.7% of income from all market of servers and 2.8% of supply rate.

Despite influence of the scalable servers which several distorted demand in the sector of high-performance computing and virtualization, bleyd-servers outstripped other market in the third quarter 2011 with the inexpressive annual growth of total revenue and rise in deliveries to 2.2%.

Income from servers of architecture of CISC (Complete Instruction Set Computer is the computer with a full range of commands) decreased by 7.9% year on year - considerable decrease taking into account high rates of last year. Sales returns of servers of this type in the third quarter made 2011 $231, 6 million. Sales reduction of servers with EPIC processors (Explicitly Parallel Instruction Computing is architecture with explicit parallelism of commands) accelerated and made 31.2% year on year. Now sales volume is about 5.4% of total sales in EMEA region.

Sales of the RISC servers (Restricted instruction set computer is the computer with the simplified command set) gain steam, having risen by 9.1% year on year and having reached $468, 5 million.

Windows as the operating system continues to be in the lead from 53.5% of revenue ($1.7 billion) though rates of annual growth slowed down up to 3.7% as expenses of the enterprises sharply fell in the sector of small business. Linux is the most quickly developing among the main operating systems, at the same time demand was positively affected by a large number of deployments of servers of x86. Income grew by 5.1% year on year. Sales returns of Unix decreased by 5.8%, and z/OS experiences strong recession - for 14.7% because of cyclic sales reduction of mainframes.

Level of income from standard servers remains stable, with inexpressive growth by 0.4%. From sales of servers of the average level $468 million are obtained, at the same time annual growth by 15.9% and obtaining advantage of growth of sales of RISC systems is noticeable. High-end devices are under a negative impact of recession in a segment of mainframes. As a result, in an elite segment decline in income for 8.7% year on year, at absolute value of $558, 8 million.

Regional markets

The joint market of Central and Eastern Europe, the Middle East and CEMA in the third quarter continued 2011 a trend of positive dynamics, despite deterioration in an economic situation in all region of EMEA. Sales returns of servers made $813.24 million that makes 7.0% of growth year on year. Large corporate purchases and also government institutions were the main source of financing of sales of servers in the region of Central and Eastern Europe, said in the report of IDC.

Central and Eastern Europe (CEE) was the only territory in EMEA region where significant sales growth is mentioned. The high demand on servers in such countries as Poland, Russia and the Czech Republic promoted growth by 15.1% year on year, having reached the total cost of the market in $457.3 million.

Traditional deceleration of business activity in the third quarter and also political instability in the Middle East and in North Africa influenced sales of servers in the countries of this region (MEA – the Middle East and Africa) which decreased by 1.8% year on year, having provided revenue in the amount of $355.9 million Israel and Turkey were among the countries where the positive growth and where could benefit by demand from the state and bank sectors is mentioned, the analyst emphasized.

The largest suppliers

Income of suppliers from sale of servers in EMEA sector in the third quarter 2011, $

Source: IDC company December, 2011

According to IDC in the third quarter 2011 in EMEA region the 15th quarter in a row HP continued to hold the leading positions in the market of servers. The superiority was provided by the ProLiant servers generating $1.1 billion - an equivalent to revenue in 48.2% of total sales of servers of x86 in the third quarter 2011. IBM managed to receive strong results from sale of RISC servers with income in $263 million, and family of servers x86 - XSeries and System x - generated significant 49.3% of total sales of this supplier in a quarter.

Dell this quarter increased the market share by 1.8 percent points, constrained by progress of competitors, with the sales volume of the PowerEdge systems in $427 million Oracle managed to increase a market share by 1.7 percent points, and the total income caused by growth in sales of RISC servers of vendor grew by 30.9% in a year. Fujitsu reserves a stable market share with the efficiency maintained by sure sales of a line of servers of x86 (Primergy) of which 67.4% of revenue of the supplier are the share.

Notes