The server market continued to decline for the third consecutive quarter. According to IDC’s Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market decreased 3.7 percent year over year to $12.1 billion in Q3.
Server market demand remained soft ahead of a forthcoming refresh cycle, which is expected to emerge in early 2014. After increasing modestly in Q2, server unit shipments were flat year over year in Q3 with 2.3 million units shipped worldwide.
On a year-over-year basis, volume systems experienced 3.5 percent revenue growth. At the same time, demand for midrange and high-end systems experienced year-over-year revenue declines of 17.8 percent and 22.5 percent respectively in Q3. The midrange and high-end segments were impacted by difficult year-over-year compares and continued weakness in Unix demand while volume demand was helped by solid x86 server demand.
“Worldwide server revenue declined in all major geographic regions including Americas, EMEA, and Asia/Pacific in the third quarter. The market was impacted by a steady transition from 2nd Platform to 3rd Platform workload demand coupled with particularly weak sales of Unix servers, which served to further dampen the market,” said Matt Eastwood, Group Vice President and General Manager, Enterprise Platforms of IDC. “2nd Platform workloads continue to represent a healthy consolidation opportunity across the market, driving solid demand for integrated systems. At the same time, 3rd Platform applications are shifting more and more server demand into cloud service provider datacentres, which is opening up new market opportunity for both ODMs and Chinese OEMs.”