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IDC: Australian Server Market Suffers Largest Quarterly Contraction on Record

  • 03 June, 2009 15:31

<p>Sydney, Australia, 3 June 2009. In the first quarter of 2009 the Australian Enterprise Server market underwent the largest contraction on record, according to IDC's Australia Quarterly Enterprise Server Tracker.</p>
<p>IDC’s research showed the overall server market in Australia contracted year-on-year with units declining by -38.9% and revenue by -38.8% compared to the first quarter of last year.</p>
<p>The Australian x86 server market shrank to its smallest recorded figure since Q1 of 2004, erasing five years of annual growth. Year-on-year, x86 units dropped -38%, while revenue contracted -46.4% compared to Q108.</p>
<p>"The first quarter of 2009 represented the biggest percentage falls witnessed since the server market was tracked by IDC, exceeding the contraction experienced from the dotcom burst. Business confidence is low and spending evaporated accordingly. The market did find some salvation in Government, Health and Education which helped prevent a deeper decline," said Matthew Oostveen, Research Manager, Asia Pacific Enterprise Servers and Datacentres at IDC.</p>
<p>Despite the contraction in the market, IDC's research showed no change to the market rankings with HP leading Dell and IBM in the x86 market. A notable performer was Acer which doubled its marketshare of unit shipments (from 2.8% to 6.7%) with success in the Education market, one of the few areas where spending has been sustained.</p>
<p>The non-x86 server space which includes RISC, Itanium, and CISC mainframe servers also declined with revenues contracting -26.6% when compared to the first quarter of 2008.</p>
<p>IDC's tracker revealed that IBM remains the market leader in non-x86 servers in Australia. Despite the hype surrounding distributed computing methodologies, System Z brand continued to perform strongly.</p>
<p>"Looking forward the market should rebound from the Q1 slump in the second quarter, however, IDC doesn't expect to see a return to business as usual just yet. 2009 will remain challenging for vendors and the channel as businesses continue to closely monitor capital expenditure," said Oostveen.</p>
<p>New servers based on Intel's Nehalem x86 architecture were released to the market at the start of Q2 which will provide vendors with an opportunity to convince consumers to resume spending. "However, even when the fog of a depressed economy lifts it will be some time before companies are spending freely again," Oostveen added.</p>
<p>For more information, please contact</p>
<p>Sally Taylor-Phillips
Marketing Communications Manager, IDC
Tel: +61 2 9925 2234
<p>Matthew Oostveen
Research Manager, Asia Pacific Enterprise Servers and Datacentres, IDC
Tel: +61 2 9925 2204
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends covering over 110 countries worldwide. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting or</p>

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