News

APEJ Server Market Ahead of Other Regions

This is despite the region growing at a modest 1.3% to total US$9,985 million in 2013

Server revenues in Asia/Pacific excluding Japan (APEJ) region grew a modest 1.3% to total US$9,985 million in 2013, coming in just short of the magical US$10 billion mark, according to IDC.

The modest growth in 2013 was in sharp contrast to the heady 17% growth recorded in 2010 and 2011, fuelled by massive infrastructure buildout by Web 2.0 and cloud service providers in the PRC. Despite the sharp deceleration in growth in 2013 compared to the previous years, server market in APEJ continued to outperform other regional markets on a worldwide basis.

“Strong adoption of server virtualization and cloud technologies in the enterprise segment, rapidly increasing appeal of public cloud providers for specific workloads, and growing interest in Integrated Systems were some of the key technology disruptions that impacted the server spending growth in 2013,” says Rajnish Arora, Associate Vice President of IDC’s Asia/Pacific Enterprise Computing Research. “Global economic malaise, lack of aggressive economic reforms in emerging economies, and political turmoil coupled with upcoming federal elections in certain countries were some of the non-technology factors that stymied server spending growth in 2013.”

The PRC, which has increasingly become the bellwether and cornerstone of the APEJ server market since 2008, grew at a much more anemic pace in 2013. The Web 2.0 and public cloud services providers such as Tencent, Baidu and Alibaba building hyper-scale datacenters, who were responsible for driving the heady demand for servers in the PRC for the past several years, took a breather in 2013 that impacted the spending growth. “Server spending plunged more than 21% in Australia and New Zealand in 2013 because customers are aggressively adopting cloud and cloud technologies to help build a much more agile and flexible IT infrastructure that is much more responsive, adaptive and predictive to the dynamic needs of the business,” opines Arora.

In addition to the chart below, an interactive graphic showing Asia/Pacific (excluding Japan) Server Market Top 10 Vendors, Revenue Share and Growth from 2012 to 2013 is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

The combined revenue share of the top three vendors – HP, IBM and Dell in APEJ has steadily declined from an all time high of 82.4% in 2010 to 70.7% in 2013. The biggest gains have been made by the Chinese vendors – Inspur and Huawei, on the back of blistering growth in their home market. Inspur surged past Oracle to take the number 4 spot in revenue market share rankings in 2013, while Huawei’s astounding growth underpinned its entry into the list of top 5 vendor rankings in APEJ.

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