Friday, February 22, 2008

Economy Slows but Server Sales still Good

Hmm I guess this slowdown in tech spending might be less than some people think.
Worldwide server shipments climbed 11% in the fourth quarter of last year
and revenue was up nearly 3%, despite fears of an economic slowdown, a market
research firm said Thursday. There was no change in the rankings of the top
vendors.

This was supposed to be a "spending slowdown" quarter but people are still springing for new servers. You would figure that the meltdown in financial services would cut the amount of server purchases but I guess not. Maybe those Mortgage Lenders and Real Estate firms weren't growing fast enough to need more server firepower before they died off.

It would be interesting to find out what server shipments are like this quarter though since this is supposed to be the so-called recession quarter. Also I think Dells numbers on Feb 28 will be a very important tell on tech spending. In any case Hewlett-Packard likes what it is seeing going forward. .
HP's recent results support the view that overseas markets might prop
up U.S. tech firms. HP said revenue from the Asia-Pacific region rose 22% last
quarter vs. the year-earlier quarter, compared with 15% for Europe and 8% for
the Americas. Nearly 70% of HP's sales come from outside the U.S.

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