pmcnamara
News Editor

Server sales went over the cliff in Q4: IDC

Opinion
Feb 25, 20092 mins

Servers are selling like hotcakes made of ground-up Chinese toys. Too flip, you say? Well, seems to me we’re at the point where the choices are gallows humor or crying … and there’s no crying in journalism.

An IDC report out yesterday shows that vendor revenue from server sales plummeted 14 percent in the final quarter of 2008.

From an IDG News Service report:

“The server market experienced its sharpest decline since the middle of the dot-com slowdown nearly seven years ago. All server vendors, geographies, and technology segments were impacted significantly as the global recession gained momentum and market conditions weakened as the quarter progressed,” said Matthew Eastwood, group vice president of IDC’s Enterprise Platforms Group in a statement.

The Wall Street Journal breaks the carnage down by vendor:

The sinking tide grounded all four major server makers, which are listed here with their revenue declines in order of market share: IBM, off 15%, Hewlett-Packard, off 10.1%, Dell, off 9.9% and Sun Microsystems, off 14.1%.

If you’re looking for good news in the report you’ll find it at the blade server rack, where quarterly revenue was up 16% from the third to the fourth.

There must be better light at the end of the tunnel, right?

Eastwood tells the Journal: “It appears that the first quarter is really going to be awful.”

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