Worldwide server sales see sharp decline

According to industry tracker IDC, Q1 2009 was the worst quarter ever for worldwide server sales. With recorded factory server sales of just $9.9 billion in the first quarter, the number represents a drop of exactly 24.5 percent compared to the same period last year.

While all segments of the server market saw lower revenue, lower-end servers saw the largest decline, plunging by a staggering 30.5 percent year over year. Matt Eastwood, group vice president of Enterprise Platforms at IDC elaborated on the situation in a statement: "Market conditions worsened in all geographic regions during the first quarter as customers of all types pulled back on both new strategic IT projects and ongoing infrastructure refresh initiatives,"

Still, everything may not be as dire as it sounds. At the moment, the market is predicted to improve in the second half of the year, though recovery will probably not come before 2010.

For more on this story:
- check out this article at CNET News

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