Server Market Not Impacted As Much As Originally Expected in the Wake of Windows Server 2003 End-of-Support, According to NPD

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Sales leading up to and then immediately following the July 14, 2015 end-of-support deadline for Windows Server 2003 grew by 6.6 percent Y/Y in the B2B channel.

“To the surprise of most, a continued demand-based spike in unit shipment growth—as a result of the hype of the Windows Server 2003 end-of-support deadline—just didn’t happen the way people anticipated,” said Michael Diamond.

Sales leading up to and then immediately following the July 14, 2015 end-of-support deadline for Windows Server 2003 grew by 6.6 percent Y/Y in the B2B channel (June 2015 to August 2015*), according to recently released data from The NPD Group’s Distributor Track and Reseller Tracking Services.

However, this increase appears to have been driven more by fairly significant ASP declines from June through August than the hype surrounding the end-of-support deadline. To that end, there was a 6.2 percent drop from June in average selling prices for servers during July and August.

“To the surprise of most, a continued demand-based spike in unit shipment growth—as a result of the hype of the Windows Server 2003 end-of-support deadline—just didn’t happen the way people anticipated,” said Michael Diamond, Director, Industry Analysis, Commercial Technology, The NPD Group. “In fact, it appears that much of the sales volume in July and August was spurred by aggressive pricing in the channel.

“There are a number of factors that have coalesced to account for these less-than-projected results, including a switch by many firms to alternative systems,” Diamond added. “Some firms have moved to cloud computing, and others have opted to virtualize their infrastructures, leaving thousands of servers in a ‘comatose’ state. Still others are outsourcing more and more of their server-based operations, further segmenting the marketplace.”

About The NPD Group
The NPD Group provides market information and analytic solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter:@npdtech @npdgroup.

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Lauren Leetun
The NPD Group
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