The enterprise server market collapsed in 2021

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Context’s latest figures show the enterprise server market fell 15% in Q4 2021 and 4.4% for the full year.

The IT market information firm said the decline was due to “issues with product supply and the reintroduction of stricter Covid-19 measures and resulting business uncertainty”, as well as to long-term trends such as “the migration to hybrid cloud infrastructure and the increasingly software-centric data center”.

But despite declines in the enterprise server market, the enterprise storage and enterprise networking segments performed well in 2021, although there were declines in the fourth quarter.

Storage sales were down 4.2% from Q4 2020 – including a 13% drop for the HCI segment in Europe – but overall the category grew 4.6% year-on-year .

Networking fell 0.5% in the fourth quarter of 2021, but overall sales were up 5.9% for the full year, including 5.2% in the UK.

The switching segment limited overall network market growth with sales down 2.1% in the fourth quarter, the category’s weakest performance of the year.

But wireless continues to grow, with growth of 5.7% in the fourth quarter and overall growth of 13% for the year compared to 2020.

“Supply challenges will persist through 2022, while the long-term trend toward hybrid working and shrinking office space will reduce investments in switching infrastructure,” said analyst Gurvan Meyer. commercial at CONTEXT.

“However, Q4 2021 revenue was actually quite strong and only moved into negative territory due to comparisons with Q4 2020, when business investment was strong after the first wave of COVID ended. .”

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