Server revenues in Asia Pacific excluding Japan (APEJ) region grew a modest 1.3% to total $9,985 million in 2013, coming in just short of the magical $10 billion mark, according to IDC.
The slim 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 out perform 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,” said Rajnish Arora, Associate Vice President – Enterprise Computing Research, IDC Asia Pacific.
“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,” added Arora.
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,” opined Arora.