back to article IBM hit hardest in UK server market bloodbath

The tech distribution channel knew the first quarter of 2013 was tough on UK server sales - but until now it was not apparent exactly how bad it was: it was a bloodbath. And what's more worrying, it isn't going to get markedly better over this year - i.e a return to growth - with analysts forecasting a single digit decline. …


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  1. James 29


    x66 was CISC last time I checked!

  2. Destroy All Monsters Silver badge

    Nebulous forecasts

    "Nebuloni expects things to pick up in the second half of the year as the economy in the UK and across Europe improves."

    How exactly is the economy going to "pick up in the second half of the year"? Monetary loosening continues apace. Unemployment is high. The ravages of the bubbles are not going away. Economies are regimented. Taxes are high. Spending is still through the roof (f*ck you austerity whiners). Banks are swimming in money. Investment is low. Assets bubbles are starting again. France is becoming PIIGSified. The next US crash is not far away.

    Things are looking up? If you look up you see a huge ACME anvil curiously doing CONSTANT BEARING DECREASING RANGE.

    Problem, forecaster?

  3. qzdave


    Is it just me... or is this not the obvious reaction to all those lovely cloud revenues everyone is boasting about... you can't sell the same capacity twice.

  4. Anonymous Coward
    Anonymous Coward

    It was only a matter of time

    Cloud offerings, increased virtualization and Moore's Law are killing the broader server market. All the major server vendors knew this time was coming because it didn't take a business analyst to see it. This trend is also just beginning. Networking is next. Fewer servers means fewer ports and SDN with high speed adapters lowers the port count even further. Millions of jobs are disappearing across the entire server industry supply chain.

  5. spiny norman

    Cloud has another impact, the big service providers either making their own servers (Rackspace joined that club this year) or sourcing them more cheaply from ODMs in the Far East. It's very hard to see much of a break in the clouds for the old server vendors.

  6. Jim O'Reilly

    Is the Cloud raining on the server parade too?

    I suspect the effect of the cloud on x86 sales is the reason for the decline. The nature of the cloud is capacity on demand, so the normal upfront purchase of sufficient capacity to cover 5 years of expansion is no longer needed. Hence, sales are lower.

    Add to this that software is lagging hardware in terms of performance demand, and those new fast CPUs seem to reduce the number of units needed. Finally, SSD usage is growing fast, and SSD allow systems to do much more. They can also be retrofitted to older systems to boost their useful life by three more years.

    Net is that x86 server unit counts and revenues will fall .

    As for the proprietary stuff, we have crossed a line that says they cost too much to acquire, run and replace. Tools to transfer to x86 are effective, and clients are biting the bullet.

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