2Q18 EMEA Server Spending Increased 29 Percent

In the second quarter of 2018, the EMEA server market reported a year-on-year (YoY) increase in vendor revenues of 29.0% to $4.1 billion, with a YoY decline of 3.7% in units shipped to 515,000, according to IDC. From a euro standpoint, 2Q18 EMEA server revenues increased 18.7% YoY to €3.4 billion. The top 5 vendors in the region and their quarterly revenues are displayed in the table below.

Top 5 EMEA Vendor Revenues ($M)

Reviewing the quarter at a product level, standard rack optimized grew 29.0% YoY, led by a strong performance in the U.K. and Germany. Standard multinode shipments grew 251.4% YoY, driven largely by the U.K., Germany, and the Netherlands. Custom multinode revenues remained strong, increasing 87.3% YoY. Higher average selling prices across standard and custom servers have driven improved revenues over the quarter. Large systems also performed well, with shipments increasing 48.6% YoY due to major refreshes in Denmark, Italy, France, and Germany.

Segmenting market performance at a Western European level, many major countries experienced overall shipment declines accompanied by significant increases in average selling prices. As Western Europe's largest market during the quarter, Germany experienced a 14.0% decline in shipments with a 23.2% increase in revenues. The U.K. saw an 8.7% shipment decline and a 29.9% revenue increase. Ireland saw a significant revenue boost from a large hyperscale deal, which drove Standard Multi Node revenues to $28.5 million. Spain was the only Western European country to see a revenue decline over the year.

"Central and Eastern Europe, the Middle East, and Africa server revenue increased by 23.3% year over year to $790.1 million in the second quarter of 2018," said Jiri Helebrand, research manager, IDC CEMA. "Strong server sales were primarily the result of undergoing refresh cycles and ODM server shipments. The Central and Eastern Europe subregion grew 33.7% year over year with revenue of $413.7 million. Romania, Poland, and Czech Republic recorded the strongest growth, supported by a solid economic situation in the region and interest in investing to update datacenter infrastructure.