Tuesday, December 23, 2025
28.8 C
Lagos

Africa, Middle East Hardware Market Flat in 2O15

A new research report released yesterday by International Data Corporation (IDC) shows that the Middle East and Africa (MEA) enterprise hardware market (comprising servers and external storage) remained flat in 2015 when compared to the annual revenues seen in the previous year.

Referencing its latest Quarterly Server and Disk Storage Systems Tracker, the research firm announced that enterprise hardware revenue in MEA totaled $2.31 billion in 2015, describing the year as transitionary in nature with organisations gradually moving towards convergence and datacenter optimisation.

“The region’s enterprise hardware landscape has transformed significantly in recent times, with organisation’s across MEA now increasingly focusing on converged systems and cloud solutions,” says Swapna Subramani, Research Manager for enterprise infrastructure at IDC Middle East, Africa, and Turkey.

“Given the challenging economic and political conditions now characterising much of the region, convergence and optimisation are becoming key.”

In line with this trend, the region is seeing increasing adoption of new technologies like converged systems, while procurement of infrastructure for cloud environments is also on the rise. The converged systems market, which includes hyper-converged appliances, grew by 6% year on year in 2015, and IDC expects this growth rate to reach 12% in 2016.

“New datacenter investments will leverage converged/hyper-converged infrastructures to support both public and private cloud deployments,” says Subramani.

The MEA external storage market declined 3% year on year in 2015. ”The region’s storage dynamics are swiftly moving in two different directions,” says Subramani.

“First is the movement into low-cost, scalable storage, while second is the growth of internal storage, which includes the value of storage enclosed within application servers containing three or more mass storage devices.”

IDC expects the high-end storage market to witness considerable uptake in the region during 2016, primarily bolstered by projects within the government, telecommunications, and oil & gas sectors. “The availability of alternative modes of storage such as flash, internal storage, converged systems, and cloud storage are the key driving factors for the ongoing shift we are seeing within the MEA storage market,” says Subramani.

Year on year, the MEA x86 server market witnessed 2% growth in value but a 4% decline in volume in 2015. “IDC witnessed an increased focus on high-end servers in 2015 as a result of investments increasingly being directed towards datacenter and cloud infrastructure projects,” says Victoria Mendes, Senior Research Analyst for enterprise infrastructure at IDC Middle East, Africa, and Turkey.

“This trend has resulted in an increase in the market’s value despite the decline in server shipments.”

The UAE enterprise hardware market grew 3% in value year on year in 2015. “The UAE was not hugely affected by the oil crisis in 2015 with a number of projects underway in the telecommunications, government, and banking sectors,” says Mendes.

“However, in line with the prevailing economic sentiment of the wider region, 2016 is expected to see a minor decline in the enterprise space as a number of key projects are postponed and budgets are cut.”

Saudi Arabia is expected to be heavily impacted by the oil crisis and the ongoing conflict in Yemen. The Kingdom’s enterprise hardware market suffered a 12% decline in value year on year in 2015 and IDC forecasts a further 17% decline for 2016.

However, the longer-term picture is far less gloomy, with IDC expecting the Saudi enterprise hardware market to stabilise and exhibit a five-year compound annual growth rate (CAGR) of 5% through to 2020.

The Africa enterprise hardware market suffered a 5% year-on-year downturn in value in 2015. The continent was rattled by currency depreciation in key markets like South Africa and Nigeria, along with political instability in several pockets of Africa.

Stability is expected to return this year, however, with IDC forecasting year-on-year growth of 3% for the continent as a whole. Egypt was the sole bright spot in 2015, showing good signs of recovery with year-on-year growth in enterprise hardware spending of 25%.

The release of pent-up demand from the political turmoil of the 2013–2014 period was the key factor driving the strong performance of the Egyptian market in 2015, and the market is expected to remain relatively flat in 2016 with cautious investments moving forward.

With 35.4% share, HP retained top spot in the overall MEA server market for 2015 despite suffering a 5% year-on-year decline in revenue. Dell moved up to second spot and was followed by IBM in the third place.

spot_img
spot_img
spot_img

Hot this week

Fidelity Bank Enhances Maternal and Child Healthcare Delivery at ESUTH

L-R: Public Relations Officer, Enugu State University Teaching Hospital...

Polaris Bank Champions Girls’ Hygiene Awareness with Female Hygiene Essentials in Schools

Polaris Bank has continued its commitment to empowering the...

Sterling Bank Champions Collective Action to Accelerate Nigeria’s Renewable Energy Transition

L-R: Mr. Ayo Ademilua, President, Renewable Energy Association of...

BUA Foods Hosts Minister of State for Industry, NSDC on Tour of LASUCO Sugar Company  

  BUA Foods Plc recently hosted the Hon. Minister of State for Industry,...

PenCom Unveils PenCare Initiative for Retirees Across Nigeria

The National Pension Commission (PenCom) has established the PenCare...

Topics

Oxfam Report: 62 People Richer Than Half of World Population

The richest 62 people in the world control more...

Mercedes Sales Rise to New Record in October, Boosted by China Demand

The new C-class wagon is helping to boost Mercedes...

CIIN Empowers Over 50 Young Insurance Professionals at Boot Camp 3.0

L-R: Guest Speakers; Mr. Boniface Amadi, Head, Business Systems Automation, Continental Reinsurance...

NAICOM Licenses 7 New Firms to Expand Insurance Market

The National Insurance Commission (NAICOM)has issued seven new licenses...

Stanbic IBTC: The N2bn Financing Boost to Nigeria’s Health Sector 

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings...

AMCON: The N1.5m Entrepreneurship Scheme for Corps Members

NYSC Director-General, Brigadier General Shuaibu Ibrahim (left) with AMCON...

Banks, Telcos Disagreement Hindering Mobile Money Services

The inability of banks and telecom operators to agree on modalities for mobile money operations is hindering the potential of such transactions in Nigeria, compared to the acclaimed success of M-pesa in Kenya. Mobile money transactions need legislations and approvals from both the Central Bank of Nigeria (CBN) which regulates the banking sector and the Nigerian Communications Commission (NCC) that oversees telecom services in the country. Giving an insight into the success of M-Pesa in Kenya at the Commonwealth Broadband Forum 2015 in Abuja, Mr. Joseph Tiampati Musuni, Principal Secretary, Ministry of Information, Communications and Technology, Kenya, said their country experienced a similar Banks-Telcos disagreement at the outset of mobile money services in Kenya. But he added that the government was able to facilitate an amicable and working arrangement between them to pave way for roll-out of the service.

Tony Epelle, CEO of Samuelson Partners is Guest Speaker at Rivers State Economic & Investment Summit 2024

Mr. Tony Epelle, the Managing Consultant/CEO of Samuelson Advisory...
spot_img

Related Articles

Popular Categories

spot_imgspot_img