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Server market slumps after seven quarters of growth

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Thomas Park
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The Hewlett Packard Enterprise logo is seen on servers at the company's Executive Briefing Center in Palo Alto, California

The worldwide server market saw a year-on-year revenue slump of 3.6 percent in the first quarter to US$12.4 billion, after a winning streak of seven quarters of growth, IDC said Wednesday.

Those investments are expected to be back in the second half of this year with a pick up in expenditure on servers for existing data centers and the roll out of new ones.

Lenovo and Cisco tied for the fourth and fifth position.

Demand for high-end systems had a year-over-year revenue decline of 33.4 percent to $1.4 billion, mainly on account of the surge in demand for IBM mainframes last year, IDC said.

The Asia-Pacific region, excluding Japan, had the highest year-on-year revenue growth of 10.2 percent in the quarter.

But ARM server chips will starting gaining traction next year, according to a research note from IDC this week.

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