Global server market to see 22% decline
Lower cost servers will have the highest growth rates through 2013
By James Carbone -- Purchasing, 6/17/2009 2:27:00 PM
Revenue from worldwide server shipments will decline 22.1% to $44.4 billion in 2009, according to researcher IDC. Sales will also decline slightly in 2009 from $44.4 billion to $44.2 billion and will then grow 2.9% in 2011 to $45.5 billion, according to the researcher.
The bad news for the server industry is that growth rates will be only around 3% per year through 2013 and revenue will continue to decline for high-end servers.
The strongest growth will come in the “volume” segment. Volume servers cost less than $25,000. Such servers will have annual growth rate of between 4-6%.
Midrange enterprise servers--those that cost $25,000-$499,000--will have negative growth in 2009-2011 and then post just 0.5% growth in 2012 and 2.5% growth in 2013, according to IDC. Still, revenue for midrange servers will decline from $12.5 billion in 2008 to $11.2 billion in 2013. High-end enterprise servers that cost $500,000 or more will have negative growth through 2013. High-end server revenue will drop from $13.1 billion in 2008 to just $7.1 billion in 2013.
The 21% decline in server revenue in 2009 is the result of constrained capital budgets of large companies caused by the economic downturn.
Also see: Server demand declines in first quarter
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