IDC: Server demand to slow after strong Q2
8/24/2011 2:17 AM EDT
SAN FRANCISCO—Demand for servers remained high in the second quarter, but weakening macroeconomic conditions throughout the world are likely to take a toll on server demand later this year, according to market research firm International Data Corp. (IDC).
Factory revenue in the worldwide server market hit $13.2 billion in the second quarter, up 17.9 percent compared to the same period of 2010, according to IDC.
The second quarter marked the sixth consecutive quarter of year-over-year revenue growth for the server market, as demand continued to improve around the world, IDC said. Second quarter server unit shipments increased 8.5 percent year-over-year, reaching 2.1 million units, the second highest total ever reported for a second quarter of any year, IDC said.
IDC reported improved market conditions across all three server classes—volume, midrange enterprise and high-end enterprise.
Volume systems experienced a 16.6 percent year-over-year revenue increase, the seventh consecutive quarter of positive growth for the segment, IDC said.
Midrange enterprise demand improved for the fourth time in the past five quarters, with a 16.7 percent year-over-year sales increase, IDC said. The improving market conditions also extended to the high-end enterprise segment, as quarterly revenue increased 22.8 percent compared to the second quarter of 2010, the firm said.
The second quarter marked the second consecutive quarter that all three segments of the server market have experienced a year-over-year revenue increase, IDC said.
Matt Eastwood, group vice president for enterprise platforms at IDC, said through a statement that server market growth accelerated in the second quarter and experienced its highest reported second quarter revenue in three years. The second quarter also marked the fifth consecutive quarter with double-digit year-over-year revenue growth, Eastwood said.
But Eastwood warned that IDC believes weakening macroeconomic conditions around the world will serve to moderate demand for new servers later this year.