Dear professionals, Middle East and Africa (MEA) x86 Server Market Enjoy Strong Growth in Q3 2013, Says IDC.
Progressively Middle East and Africa (MEA) zone demonstrates its potential. Thanks
to the latest insights from International Data Corporation (IDC).
Connectikpeople.co has received the latest 'EMEA Quarterly Server Tracker'.
According to International Data Corporation (IDC) the research and advisory firm,
the MEA x86 server market expanded 9.9% in volume during Q3 2013, with revenue
rising 10.6% over the same
period.
Connectikpeople.co can observe: The Saudi market was the standout performer
of the quarter in the GCC, registering strong year-on-year volume growth of
16.4%. "Several major deals were completed with various government
ministries, banks, and education institutes during the quarter, combining to
drive the strong growth seen in Q3," says Zeeshan Gaya, research manager
for servers and systems at IDC Middle East, Africa, and Turkey. "The UAE
market also exhibited strong year-on-year growth, with shipments increasing
13.0% on the back of key projects taking place in the government and banking
sectors."
In contrast the so-called 'Other GCC' (OGCC) bloc of countries, comprising
Bahrain, Kuwait, Oman, and Qatar, suffered a marginal 1.8% decline in volume
over the same period, although there was a significant year-on-year increase of
22.6% in revenue. The growth in revenue came as a direct consequence of the
average selling price of a server increasing 24.8% compared to Q3 2012.
As expected, the Egyptian market slumped 36.6% year on year in volume terms
as a result of severe project delays and cancellations brought about by the
ongoing political instability in the country and associated uncertainty.
Indeed, the only noticeable projects seen in Egypt during Q3 2013 were for the
Egyptian Stock Exchange and within the defense sector.
Turkey also experienced a downward trend in the third quarter of the year,
with unit shipments dipping 8.8% year on year. The government, banking, and
telecommunications sectors were the key IT spenders in the country during this
period. "The Turkish government is proactively taking necessary measures
to increase the economic and political resilience of the country," says
Adriana Rangel, research director for systems and infrastructure solutions at
IDC Middle East, Africa, and Turkey. "It is also striving to improve the
investment environment in an attempt to facilitate and stimulate continuous
economic growth. Additionally, local elections scheduled for mid-2014 are
expected to have a positive impact on IT spending in the country."
Strong year-on-year shipment growth of 35.7% and 21.8% was recorded in
Morocco and Tunisia, respectively, stimulated by the stable nature of the
political situation in these countries and corresponding investments in the
government, banking, and telecommunications sectors. Overall, the North Africa
region performed well in Q3 2013, registering a 20.4% increase in volume when
compared to the corresponding quarter in 2012.
The Kenyan and Nigerian markets secured the highest growth seen across the
entire MEA region in Q3 2013, registering an annual shipment growth of 67.1%
and 62.8%, respectively. "Sizeable projects conducted by financial
institutions and telecom operators contributed to the strong server growth seen
in Nigeria, while the majority of large deals conducted in Kenya during the
third quarter of the year were in the banking and utilities sectors, with the
government sector taking a back seat," says Gaya.
South Africa experienced a 6.6% year-on-year increase in server shipments,
driven primarily by investments in the government and financial services
sectors. "Server uptake in the small and medium-sized business (SMB) space
was sluggish in South Africa during Q3 2013, with the majority of spending
coming from the enterprise segment," continues Gaya. "The purchasing
pattern among mid-to-large organizations has been gradually shifting from
standalone servers to converged and integrated solutions. However, some large
government deals are in the pipeline for Q4, with a particular emphasis on egovernment
initiatives such as smart energy management solutions and smart city
programs."
Growth was seen across all the major form factors in the MEA region during
Q3 2013. Blades were the market's strongest performers, with shipments up 27.5%
year on year, followed by rack-optimized and tower servers, with increases of
8.7% and 3.2%, respectively. Bucking the trend somewhat, shipments of
density-optimized servers were down 22.9% year on year across the MEA region.
Shipments of one-socket servers grew an impressive 24.8% over Q3 2012,
securing market share of 30.4%, up 3.6 percentage points higher than last year.
Two-socket servers remain the dominant socket capability, however, comprising
more than half of the MEA market with 65.1% unit share. Four- and eight- socket
servers continued to grow in the third quarter of the year, recording
year-on-year volume increases of 24.3% and 47.4%, respectively.
About the Research
IDC's 'EMEA Quarterly Server Tracker' is a quantitative tool for
analyzing the server market on a quarterly basis. The tracker includes
quarterly shipments (both ISS and upgrades) and revenues (both customer and
factory), segmented by vendor, family, model, region, country, operating
system, price band, CPU type, and architecture.
About IDC
International Data Corporation (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
1,000 IDC analysts provide global, regional, and local expertise on technology
and industry opportunities and trends in over 110 countries worldwide. For more
than 49 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 www.idc.com.
IDC in the Middle East, Africa, and Turkey
For the Middle East, Africa, and Turkey region, IDC retains a coordinated
network of offices in Riyadh, Casablanca, Nairobi, Lagos, Johannesburg, and
Istanbul, with a regional center in Dubai. Our coverage couples local
insight with an international perspective to provide a comprehensive
understanding of markets in these dynamic regions. Our market intelligence
services are unparalleled in depth, consistency, scope, and accuracy. IDC
Middle East, Africa, and Turkey currently fields over 125 analysts,
consultants, and conference associates across the region.
