EMEA 2009 Q2 server sales report: A jaw-dropping drop of 35% to €2.9Bn!
By Tarry Singh at 16 September, 2009, 12:55 pm
The server sales for the coming quarters and years is going to dramatically fall as most customers who will hang on to their newly acquired hardware to upto 6 years! Most of my customers are simply doing it as there are no budgets for server/hardware since the in-fighting to attain and consume the budgets for last year cost both IT Managers and board a lot of energy.
Expect this decline to persist even in the wake of Europe now surpassing North America as the richest region in the world [following an AuM study done by BCG (Boston Consulting Group) . The most important lessons to be learned here is:
- Server boys have to start talking to big DC owners and really striking deals if they want to maintain some
- Server guys will have to come up with reservation policies to park their gear in DCs and only charge DC owners for firing up the boxes
- Financial models have to change as the box-sellers to more longer term in order to sustain the onslaught that will be incurred in the coming quarters/years.
- Less and less money will be spent in IT!
The steeper decline is due in large part to the collapse of formerly fast-growing markets in Central and Eastern Europe, the Middle East, and Africa, which have not begun coming out of recession yet and which have stopped buying servers. Taken together, these regions had a 37.5 per cent drop in sales and a 44.3 per cent decline in shipments.
Central and Eastern Europe, which was booming not so long ago, accounted for only 46,000 server sales in Q2, and sales fell a stunning 45.6 per cent to $283.4m. And the numbers were only that high, said IDC, because a couple of large deals that didn't close in Q1 managed to close in Q2.
And no I don't believe this, many of my customers have also chose to re-use the gear in their massive virtualization projects... and we're talking NW Europe.
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