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Global server shipment declines 0.2 pc, revenue up 5 pc in 4Q12

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For year-end results, as per Gartner, worldwide server shipments grew 1.5 per cent in 2012, and server revenue declined 0.6 per cent

BANGALORE, INDIA: In the fourth quarter of 2012, worldwide server shipments declined 0.2 per cent year-on-year, while revenue increased 5.1 per cent from the fourth quarter of 2011, according to Gartner.

For year-end results, worldwide server shipments grew 1.5 per cent in 2012, and server revenue declined 0.6 per cent.

"2012 was a year that definitely saw budgetary constraint which resulted in delays in x86-based server replacements in enterprise and mid-sized data centers," said Jeffrey Hewitt, research vice president, Gartner. "Application-as-a-business data centers such as Baidu, Facebook and Google were the real drivers of significant volume growth for the year."

"Relatively weak mainframe and RISC/Itanium Unix platform market performance kept overall revenue growth in check," Mr. Hewitt said.

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From a geographic perspective, the three highest growth rates were shown by North America (5.5 per cent), Asia/Pacific (3.4 per cent) and Latin America (0.2 per cent) in terms of unit shipments. These were the only regions to experience an increase in shipments. These three regions grew at a rate of 16.3, 15.5 and six per cent respectively.

IBM extended its lead in the worldwide server market based on revenue in the fourth quarter of 2012. In the fourth quarter, IBM's server revenue reached $5.1 billion in the fourth quarter of 2012 to increase its global market share to 34.9 per cent. This was up from 33.7 per cent market share in the fourth quarter in 2011.

Three of the top five global server vendors experienced revenue growth in the fourth quarter of 2012, with IBM showing the strongest growth rate of 8.9 per cent, while Oracle had the steepest revenue decline of 18 per cent.

In server shipments, HP remained the worldwide leader for the fourth quarter of 2012, as it accounted for 26.5 per cent of the market. HP's shipments declined 5.9 per cent. The ProLiant brand remains as HP's significant driver of server unit volume.

Of the top five vendors in server shipments worldwide, Cisco was the only vendor to experience an increase in shipments in the fourth quarter of 2012. Cisco's worldwide server shipments increased 40.9 per cent in the quarter.

The results for the quarter were centered around x86 server demand which increased in shipments by 0.2 per cent and revenue by 6.6 per cent for the fourth quarter of 2011.

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