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Compute, Data Hungry Applications Drive EMEA Server Spending Growth of 3.4%

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As reported in International Data Corporation’s (IDC) EMEA Server Tracker, in the fourth quarter of 2014 the EMEA server market continued the strong growth seen in the past few quarters, reporting $3.7 billion in vendor revenue and 630,000 units shipped, for year-on-year growth of 1.2% and 4.4% respectively.

For the full year 2014, vendor revenue was $128 billion and 2.6 million server units were shipped, with growth on 2013 at 3.4% and 1.2% respectively.

This was the first full-year growth in both units and vendor revenue for the past three years for EMEA.

Looking at the market in euros, EMEA in 4Q14 reported very strong YoY revenue growth (10.4%), but currency fluctuations are minimizing the impact on U.S.-based vendors in Europe.

The EMEA non-x86 market showed mixed signals again in 4Q14. Revenue was down 22% year on year in the quarter, reaching $675 million, as CISC, EPIC, and traditional RISC machines all showed double-digit declines.

On the positive side, 4Q14 saw strong yearly volume growth (up 45% YoY), driven by initial deployments of miniature ARM servers in the region.

While ASPs in the non-x86 space declined to their lowest in 23 quarters, the EMEA x86 market has continued along its inverse trend, with ASPs continuing to rise to previously unseen levels.

This increase in x86 ASPs pushed vendor revenue to $3 billion in 4Q14, a YoY increase of 8.3%, while units shipped only saw a 4% increase over 4Q13 (621,085 units).

This trend in rising ASPs was even stronger in the European markets considering the difficult global economic situation.

2014 saw the EMEA x86 market break the $10 billion mark for the first time as vendor revenue grew 9.7% over 2013.

Unit shipments have continued to react more slowly, only seeing a 1.2% increase over 2013 to 2.2 million unit shipments in 2014.

Although the x86 market has shown continued growth it was outperformed by the non-x86 market, which gained 5% revenue share in 4Q14, accounting for 18.0% of all revenue generated in EMEA.

IDC believes this trend is being driven by the emergence of Big Data, business analytics, and other compute hungry applications.

“As macroeconomics in Western Europe continue along the path of slow, tiresome recovery, we believe a key factor impacting spending and prices in the first half of 2015 will be currency. Strong dollar appreciation is playing a role in setting local currency selling prices. If this continues through the course of the year, IDC believes there is a potential downside on discretionary spending, especially in SMB environments,” said Giorgio Nebuloni, associate research director with IDC EMEA.

The majority of this growth can be attributed to continued growth in rack-optimized server adoption — a market that contributed 59% of all x86 vendor revenue in 4Q14 and generated $1.7 billion in spending for the 335,000 units that were shipped into EMEA for 4Q14, to report a 1.6% YoY ASP increase.

Blade servers contributed 26% ($775 million) to the overall revenue spend in the x86 EMEA server market for 4Q14 — a 2 percentage point increase on 3Q14 — though unit shipments continue to slow in comparison to the same quarter in 2013.

Tower servers reported revenue and unit YoY declines of 3% and 4% respectively, to contribute a little over $300 million in vendor revenue for the 146,000 units that were shipped in the EMEA x86 market.

Western Europe Highlights
Western Europe has continued along last quarter’s growth patterns to report a YoY gain of 5% in unit shipments and 11% in vendor dollar revenue.

Overall Western Europe had a very good year with overall spending in 2014 $430 million higher than in 2013 (12% YoY); though this growth in spending was driven by increasing ASPs, Western Europe saw a 3% YoY increase in unit shipments to report 47,000 units more than were shipped into Western Europe in 2013.

Final figures for vendor revenue and units shipped into Western Europe for 4Q14 were $2.2 billion and 465,000 units respectively.

Contributing 76% of revenue share, Western Europe reported slower growth in 4Q in comparison to other EMEA regions.

It lost 1% revenue share to CEMA compared with 3Q14, but a YoY comparison shows that Western Europe gained 2% revenue share from 4Q13.

The slow but stable volume decrease seen by the non-x86 segment over the past few years did an about-face in 4Q14, with unit shipments growing 58% compared with the same quarter in 2013 — reporting a total of 7,500 units shipped into Western Europe for 4Q14, the highest unit shipments in 14 quarters.

“This has been driven by the emergence of ARM servers in the Western Europe market — though these systems have markedly lower ASPs, IDC predicts that as larger vendors begin shipping more of these systems the non-x86 volumes will start to show positive growth. Spending impact will initially be fairly limited, but that might change toward the end of the year,” said Eckhardt Fischer, research analyst, IDC EMEA Enterprise Server Group.

Linux put in a strong performance in the x86 market in Western Europe in 2014, increasing revenue and unit share by 4 percentage points in comparison to 2013.

3Q14 saw the biggest increase in Linux revenue share with a 1.5% improvement over the previous quarter.

 The Linux operating system for 4Q14 in Western Europe managed to hold onto this revenue share, reporting 37% of the revenue and 35% of the unit share for the quarter.

This was mainly due to strong quarters in Denmark, France, Germany, and Sweden, driven by the likes of Cray Inc., Dell, Group Bull, HP, and SGI, and the entrance of Lenovo.

“The moderate growth in the Western European server market this quarter was mainly fuelled by increases in rack and density-optimized server shipments, while blades and towers have seen moderate declines,” said Andreas Olah, senior research analyst, IDC EMEA Enterprise Server Group.

“The expansion of hyperscale datacenters by cloud service providers that run on ODM servers to a large extent has contributed to the overall boost. Datacenter projects across the Nordics, Benelux, and Ireland have contributed to positive year-on-year growth in these markets in revenue terms, while moderate declines were observed in Germany, France, and Italy.”

CEMA Highlights
“Central and Eastern Europe, the Middle East, and Africa [CEMA] server revenue recorded growth of 1.3% year over year to reach $906.23 million in the last quarter of 2014.

Year-end spending of available budgets helped to lift x86 server sales in enterprise accounts and the education sector, while non-x86 sales performed well in the government segment,” said Jiri Helebrand, research manager, IDC CEMA.

“The Central and Eastern Europe [CEE] subregion grew 1.6% year over year to $498.54 million, benefitting from demand in the finance and government verticals. Russia performed better than initially projected as government budgets allowed for new investments toward the end of the year.

“Poland was also a surprise, driven by the delivery of several HPC deals. The Middle East and Africa [MEA] subregion was up 1% year over year to $408 million, driven by infrastructure investments in Saudi Arabia and UAE, offsetting the slowdown in South Africa and Turkey due to local currency depreciation.”

EMEA Highlights
Non-x86 revenues continued their steady spending decline (-21.6% YoY), driven by CISC servers (-36.8% YoY).

Windows continues to grow its vendor revenue share and is up 2.3 percentage points YoY. Linux, however, rallied again in the quarter due to some larger deals, to report a 3.7 percentage point YoY increase and claim the largest OS gain for two consecutive quarters.

Maintaining top spot, volume servers contributed $2.8 billion to the EMEA market and gained 9.8 percentage points on the corresponding quarter in 2013.

4Q14 was not kind to high-end enterprise servers, which reported a 32.3% YoY decrease in vendor revenue, with not much separating them from midrange enterprise servers in terms of spending.

Rack servers were the biggest influencer in EMEA in 4Q14, reporting 8.15% YoY growth in vendor revenue and 7.8% unit growth, for $2.1 billion in vendor revenue and 34,000 units shipped into the EMEA market in 3Q14.


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Effective Software, Hardware Training Will Boost Development – Okpalanedu

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Prince Constantine Okpalanedu, Chief Executive Officer, Gadgethub Ltd, a Political Scientist turned Techpreneur, with strong strength in sales of technology products and solutions, speaks to ICT Reporters about his over 16 years of commitment to tech innovation, tech-trend adaptation, software and hardware training, among others. Excerpts:

As a Political Scientist turned techpreneur, what motivated your choice of career in the tech space and what has been your impact on the technology sector?

As a Political Scientist turned tech entrepreneur, my transition into the technology sector has been nothing short of transformative. My deep-rooted belief in technology as a powerful catalyst for social change and empowerment has shaped every aspect of my journey.

While my academic background in political science provided me with a comprehensive understanding of governance, societal structures, and human interactions, it also heightened my awareness of the pressing challenges we face as a society.

It became increasingly clear to me that technology holds the key to scalable and innovative solutions, particularly in emerging markets like Nigeria.

In essence, my motivation for venturing into tech business can be distilled into several key themes: Passion for problem-solving.

I have always been driven by a desire to tackle real-world challenges head-on. Technology: With its unparalleled ability to revolutionise access to information and enhance business operations, seemed like the ideal platform for me to make a meaningful impact.

Desire for impact: The potential to create a product or service that could positively affect the lives of millions captivated me. Inter-disciplinary skills: My background in political science armed me with invaluable skills such as analytical thinking, strategic planning, and the foresight to anticipate societal trends.

These skills have proven essential in navigating the complexities of building a successful tech-enterprise. I was excited about the chance to push boundaries, solve tech related problems, and make a lasting impact on society. The impact of my endeavours in the technology sector can be summarised through key achievements such as pioneering IT services and products.

As the founder of Gadgethub Ltd, I have led efforts that provided individuals and businesses with cutting-edge technology solutions. Our innovations have significantly enhanced productivity and connectivity, empowering our clients to thrive through our e-commerce platform, www.gadgethubng.com.

We have democratized access to quality, affordable tech tools for small and medium enterprises. This access is vital for fostering growth and enabling entrepreneurs to scale up their businesses.

Emerging technologies like Artificial Intelligence (AI) and Machine Learning (ML) are fast driving innovation across different sectors. How are you leveraging AI to drive innovation?

At Gadgethub limited, we are at the forefront of embracing artificial intelligence (AI) as a transformative tool that fuels innovation and delivers significant value to our clients and customers.

The integration of AI into our operations encompasses a variety of critical dimensions. We are revolutionising customer interactions by employing AI-powered chatbots and virtual assistants throughout our platform. These intelligent systems provide personalised support and ensure quick resolutions to inquiries, creating seamless customer experience.

What are some of the activities of Gadgethub that stand it out?

At Gadgethub, we specialise in providing a comprehensive range of technology supplies, hardware, and software solutions. Our services include the installation and remote management of IT systems to address our clients’ technological needs effectively while they focus on their daily operations.

Additionally, we conduct thorough reviews of emerging technology trends, which we disseminate through our social media channels and blog platforms. We also offer training programmes for undergraduates in both hardware and software disciplines.

Furthermore, we provide our clients with expert technical advice at no cost, assisting them in selecting the most suitable products and software to enhance their business operations.

How has Gadgethub positioned itself to be at the forefront of tech innovation?

At Gadgethub, our core competency lies in addressing the contemporary demands of technology products and services. We accomplish this through a diverse team of seasoned IT professionals, each possessing extensive experience in the field.

Our team actively participates in seminars and technology trade fairs, both domestically and internationally, to remain informed about the latest advancements and trends in the technology space.

What makes Gadgethub unique in the IT space?

The three core principles that distinguish us are trust, timeliness, and teamwork. We consistently endeavour to exceed our clients’ expectations. In essence, we are committed to upholding trust and excellence in our daily operations.

Furthermore, one of our fundamental values is our responsibility to contribute positively to the environments in which we operate. We conduct ourselves with integrity, even in the absence of oversight. Ultimately, we regard God as our greatest strength and partner in our endeavours.

What are some of the major projects that spurred high moments in your career?

Some of our major projects that spurred high moments, include: the successful installation of alternative power solutions, specifically solar power, and closed-circuit surveillance (CCTV) systems at the Chief Tunde Afolabi Infectious Disease Centre, University College Hospital, Ibadan during the COVID-19 pandemic in 2020. The project was subcontracted to Gadgethub by Xspeedo Integrated Services Ltd.

Secondly, we were part of government intervention by successfully installing intelligent disinfectant channel machines in various companies and government institutions throughout the same Covid period.

Additionally, one of our high moments was when we conducted consultancy services and market intelligence surveys for Chikason Group and other investor companies interested in investing and gaining a share in the Nigerian technology market.

Lastly, we have consistently provided significant cost advantages to numerous companies and institutions, facilitating substantial savings in their procurement of IT products and services.

What is your advice for the youths that see you as their role model?

In everything you pursue in life, priorities your faith—put God first and let that guiding principle shape your actions. Alongside this, focus on working smart rather than just hard; remember that there are no shortcuts on the path to true success.

Surround yourself with friends and associates who engage in legitimate business practices, as this can provide a positive and supportive environment. Maintain a low profile and steer clear of controversies; by consistently making the right choices, you will find that divinity may very well come your way.

As we progress, I would like to take this opportunity to sincerely thank our esteemed customers and clients for their continued support and trust in our services. We also extend a warm invitation to other businesses to join our growing list of clients. Companies should be rest assured that we are committed to delivering exceptional satisfaction and fostering a prosperous partnership with them in 2025.

Most times, people use emerging technology tools for the wrong things like hacking. What is your take on this, and how will you advise against the negative use of emerging technologies?

First is to encourage ethical awareness. It is crucial for developers and users to embrace ethical frameworks and fully comprehend the implications of their actions. A proactive approach to cybersecurity must be adopted by all users.

It is essential for governmental bodies and technology organisations to establish and enforce laws that impose penalties for the misuse of technology while simultaneously fostering an environment that incentivises responsible innovation, and promote positive applications.

For instance, the use of AI in advancing healthcare, blockchain technology to enhance transparency in transactions, and the role of Internet of Things (IoTs) in modernising agricultural practices are powerful examples that can motivate users to leverage their skills for constructive purposes.

Educate the general public. about the potential risks associated with misuse, can empower members of society to identify and avoid unethical behaviours when engaging with technology.

We should prioritise the culture that encourages responsibility, transparency, and with that, we can unlock the full capabilities of emerging technologies for the benefit of all while simultaneously mitigating their potential negative consequences.

What is your view about government support for small tech businesses in Nigeria, and what form of government policies do you think will enhance the growth of small businesses?

As a passionate business owner in the dynamic tech sector, I firmly believe that robust government support for small businesses is essential for nurturing innovation, creating job opportunities, and fueling economic growth.

However, many small tech enterprises in Nigeria grapple with considerable obstacles, including limited access to funding, insufficient infrastructure, and erratic policy implementation that hinder their progress.

It is crucial for the government to initiate targeted programmes such as tech funds and grants, low-interest loans, and venture capital funds, specifically designed for tech start-ups.

For small tech businesses to thrive, they require an environment conducive for productivity. This involves reliable electricity, affordable internet connectivity, and access to collaborative workspaces or technology hubs.

Providing tax breaks or holidays for small businesses during their formative years can alleviate financial pressure considerably. The proposed tax reform bill has the potential to significantly benefit small businesses and support their sustainability.

On a special note, I would like to express our gratitude to the Lagos State Employment Trust Fund – www.lsetf.ng for their invaluable support.

Through this initiative, our company, Gadgethub, has successfully accessed an SME loan at a favorable single-digit interest rate of 9 per cent, with a repayment schedule stretched over 18 months, enabling us to continue our journey of innovation and growth.

How will you describe the business environment in 2024, and what are your expectations and projections for 2025?

The Nigerian business landscape in 2024 has been characterized by a complex interplay of significant challenges coupled with promising avenues for growth.

Here are my detailed observations for the year: The relentless grip of persistent inflation, alongside soaring interest rates, has significantly elevated the overall cost of conducting business in Nigeria. This economic strain has compelled many enterprises to reassess their operational strategies to maintain profitability.

With anticipated reforms and burgeoning international partnerships, there is optimism that Nigeria could experience improved macroeconomic stability in the near future. These advancements could lead to a reduction in inflation rates and enhanced liquidity in the foreign exchange market, creating a more conducive business environment.

As the internet penetration deepens and the rollout of 5G technology accelerates, the adoption of emerging technologies like Artificial Intelligence, the Internet of Things (IoT), and Blockchain, is expected to gain considerable momentum.

This technological leap will foster an innovative ecosystem ripe with opportunities. In parallel, the demand for cloud computing and cybersecurity services is projected to soar as more businesses transit into the digital realm, highlighting the importance of safeguarding data and information.

What is your take on Nigeria’s digital transformation initiative, and how will the initiative benefit small tech businesses in Nigeria?

Nigeria’s digital transformation initiative, spearheaded by the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, marks a pivotal moment in the country’s journey into technological advancement.

The initiative aims not just to enhance innovation, but also to streamline operations and stimulate significant economic growth for small tech businesses. The benefits of the initiative are abundant and multifaceted.

The Nigerian government is prioritising the expansion of broadband accessibility and the overall digital infrastructure. The commitment resulted in a more stable and accessible platform for tech enterprises.

Startups can capitalize on improved connectivity to deliver their products and services with greater efficiency, ultimately enhancing customer experiences and operational workflows.

The Minister has delineated nine crucial policy initiatives that are set for review and implementation. These policies hold the potentials to significantly empower small tech businesses, providing them with the structure and support necessary to up-scale their operations and innovate without constraints.

By nurturing local talent, the initiative ensures that tech businesses have access to a continuous stream of capable professionals who can drive their growth and innovation and broadened market access.

Nigeria currently has a high rate of digital skills dearth. What in your view should the government and the private sector do to address the challenge?

Nigeria’s digital skills gap presents a formidable barrier to the nation’s economic growth and its competitiveness on the global stage. To effectively tackle this pressing issue, a comprehensive set of work plans are necessary for both the government and the private sector to undertake: national digital skills strategy.

Government should prioritise the creation and implementation of a robust national strategy focused explicitly on digital skills development. This strategy must emphasize the importance of technology education, continuous up-skilling, and the concept of lifelong learning, ensuring that all citizens have access to the digital knowledge necessary to thrive in a rapidly evolving job market.

It is crucial to allocate substantial funding towards enhancing ICT infrastructure, which includes the installation of reliable internet access across both rural and urban areas, thereby bridging the digital divide. Improved connectivity is essential for facilitating access to digital education and resources.

 


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Konga Kicks Off 2025 with Unbeatable Discounts in ‘Jara’ Promotion

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Nigeria’s foremost composite e-commerce giant, Konga, has announced its first major sales event of 2025—Konga Jara.

This exciting campaign offers shoppers massive discounts of up to 70%, providing a perfect opportunity to save big and kickstart the year with unbeatable deals.

The 2025 edition of Konga Jara, themed “Confam New Year Deals,” commenced on Wednesday, January 1, and is set to run through Friday, January 31.

The promotion is accessible across all of Konga’s platforms, including its online store at www.konga.com and retail outlets nationwide.

Konga Jara is a well-loved annual shopping campaign designed to deliver extra value to customers, as its name implies.

The initiative is a thoughtful response to the financial challenges many Nigerians face in January, offering a wide range of products at heavily discounted prices to ease their burdens and meet their needs.

Shoppers can look forward to incredible deals on various items, including essential food staples such as bags of rice, cooking oil, tomato paste, condiments, and beverages.

Other discounted categories include Fast Moving Consumer Goods (FMCG), computing, groceries, fashion items, home and kitchen appliances, and quality wines and spirits, as well as non-alcoholic beverages.

In addition to the exceptional discounts, Konga Jara meets the yearnings of customers seeking value and affordability as it addresses the practical challenges of post-holiday season shopping.

By delivering competitive prices and substantial savings, the campaign reinforces Konga’s commitment to enhancing the shopping experience for its teeming customer base.

Speaking on the promotion, Kunle Ajani, Head of Marketing at Konga, highlighted the campaign’s strategic timing and consumer-centric approach. “We understand that January can be a challenging month for many.

“Konga Jara is our way of supporting our customers and helping them start the year on a positive note. With discounts of up to 70% across various categories, shoppers can enjoy great value and significant savings while purchasing essential items and more.”

Konga Jara continues to solidify the e-commerce giant’s reputation as the go-to platform for unbeatable deals, customer satisfaction, and quality products. With its expansive reach and seamless shopping experience, Konga invites everyone to take advantage of these exceptional “Confam New Year Deals” and make their 2025 shopping even more rewarding.

 


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NBS Votes N35m for Cybersecurity after Cyber Attack

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National Bureau of Statistics (NBS) has allocated N35 million in its 2025 budget for enhancing cybersecurity measures, following a cyber attack on its website on December 18, 2024.

NBS Votes N35m for Cybersecurity after Cyber Attack

Shortly after releasing its crime experience and security perception survey, the NBS website was compromised.

The bureau had reported that Nigerians paid N2.23 trillion in ransom between May 2023 and April 2024.

In addition to bolstering cybersecurity, the NBS’s N9.85 billion budget includes several significant initiatives.

These consist of N500 million for the Labour Force Survey, N80 million for the production of the Consumer Price Index, and N60 million for compiling quarterly GDP reports.

Other notable allocations are N55 million for the National Agricultural Sample Survey, N50 million for monitoring the 8-Point Agenda, and N45 million for service delivery capacity building.

Additionally, there are projects like N15 million for demographic statistics and N9 million for the Annual Abstract of Statistics.

 

 

Credit: newsdigest


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