Top server market findings
* Unix servers experienced 6.2 percent revenue decline when compared with 4Q07. Worldwide Unix revenues were $4.9 billion for the quarter, representing 36.2 percent of quarterly server spending and reflecting continued IT investment in this server market segment.

* Microsoft Windows server demand was impacted by the slowing x86 market as hardware revenue declined 17.8 percent and unit shipments declined 10 percent year over year. Quarterly revenue of $4.8 billion for Windows servers represented 35.3 percent of overall quarterly factory revenue.

* Linux server demand also weakened in 4Q08 with revenue declining 7 percent year over year to $1.8 billion. Linux servers now represent 13.6 percent of all server revenue, up more than 1.0 points over 4Q07.

"While Unix server revenue declined in the fourth quarter, Unix server share of 36 percent of quarterly server-market revenue compares well with the year-ago quarter, when Unix server revenue accounted for 33 percent of quarterly revenue," said Jean S. Bozman, research vice president, IDC Enterprise Platforms Group. "So, while actual revenue was lower this time around ($4.9 billion in 4Q08 vs. $5.2 billion in 4Q07), the share of total revenue shows continued investment in Unix servers, where customers have invested so deeply over the years to support mission-critical workloads."

x86 industry standard server market dynamics
The x86 server market decelerated sharply in 4Q08, with factory revenues declining 17 percent in the quarter to $6.5 billion worldwide as unit shipments declined 11.7 percent to 1.8 million servers. Sun was the only top five server vendor to experience positive x86 server revenue growth in the quarter, growing factory revenue 21.3 percent, and gaining x86 market share in the process.

HP led the market with 38.2 percent revenue share and Dell retained second place securing 21.9 percent revenue share. For the full year 2008, worldwide x86 server revenue declined 5.3 percent to $27.8 billion, while worldwide x86 unit shipments grew 2.8 percent to 7.7 million units.

Blade server market shows strong shipment and revenue growth
Although the blade market experienced positive growth in the quarter, the segment decelerated sharply, with factory revenue increasing 16.1 percent year over year on shipment growth of 12.1 percent compared to 4Q07. Overall, bladed servers, including x86, EPIC, and RISC blades, accounted for $1.4 billion in the fourth quarter, representing 10.4 percent of quarterly server market revenue.

More than 85 percent of all blade revenue is driven by x86 systems where blades now represent 18.5 percent of all x86 server revenue. HP maintained the number 1 spot in the server blade market in 4Q08 with 54.8 percent revenue share and IBM finished with 21.7 percent revenue share. Sun, Dell, and Fujitsu/Fujitsu-Siemens all significantly outperformed the market with year-over-year revenue growth of more than 60 percent, respectively.

For the full year 2008, worldwide blade server revenue grew 33.3 percent year over year to $5.4 billion.

"While the x86 market declined double digits, blades remained a bright spot as the only section of the market showing positive unit growth, gaining 8.8 percent over those shipped in the fourth quarter of 2007," said Dan Harrington, research analyst, IDC's Enterprise Platforms Group. "End users continue to invest in blades as an attractive option due to their TCO advantages and energy efficiency benefits."