Global server market stabilizes

Server Market

Global server market stabilizes

Gartner says that worldwide server market is showing signs of stabilization in spite of yearly declines in shipments of 17.1 percent and revenues of 15.5 percent

Monday, November 30, 2009

MUMBAI, INDIA: Worldwide server shipments for the third quarter of 2009 dropped 17.1 percent over the same quarter last year, while worldwide server revenue for the same period declined 15.5 percent according to Gartner, Inc.

Worldwide server revenues totaled $10.7 billion for the quarter, as worldwide servers shipments reached 1.2 million units.

Indian server market up 7pc in 2Q09

Jeffrey Hewitt, research vice president, Gartner, said: "It is important to put the yearly declines into perspective. Looking at the third quarter results from the sequential perspective, they showed an increase of 13.8 percent in shipments and 10.2 percent in revenues when compared to the second quarter of this year. That suggests that the market as a whole is showing signs of stabilization as we move toward the end of 2009.”

IBM held the revenue lead in the worldwide server market for the quarter (see Table 1). IBM’s overall revenue share lead over second-place HP was 1.5 percent for the quarter. Four of the top five vendors posted double-digit declines in revenue year over year. However, all of the top tier vendors experienced sequential revenue growth, except for Sun Microsystems.

Table 1
Worldwide: Server Vendor Revenue Estimates, 3Q09 (U.S. Dollars)

Company	3Q09 Revenue	3Q09 Market Share (%)	3Q08 Revenue	3Q08 Market Share (%)	3Q08-3Q09 Growth (%)
IBM	3,383,768,798	31.7	3,856,826,095	30.6	-12.3
HP	3,219,767,761	30.2	3,793,197,226	30.1	-15.1
Dell	1,424,751,880	13.4	1,500,603,160	11.9	-5.1
Sun Microsystems	784,566,516	7.4	1,158,251,731	9.2	-32.3
Fujitsu	550,276,517	5.2	616,753,331	4.9	-10.8
Other Vendors	1,296,196,855	12.2	1,683,452,756	13.4	-23.0
Total	10,659,328,327	100.0	12,609,084,300	100.0	-15.5

Source: Gartner (November 2009)

While the global server providers all posted year-on-year shipment declines for the quarter, all of the vendors experienced sequential shipment increases for the period.

Table 2
Worldwide: Server Vendor Shipment Estimates, 3Q09 (Units)

Company	3Q09 Shipments	3Q09 Market Share (%)	3Q08 Shipments	3Q08 Market Share (%)	3Q08-3Q09 Growth (%)
HP	615,694	32.1	724,024	31.2	-15.0
Dell	437,447	22.8	500,470	21.6	-12.6
IBM	246,493	12.8	308,524	13.3	-20.1
Fujitsu	66,953	3.5	73,578	3.2	-9.0
Sun Microsystems	50,435	2.6	81,522	3.5	-38.1
Other Vendors	503,497	26.2	629,864	27.2	-20.1
Total	1,920,519	100.0	2,317,981	100.0	-17.1

Source: Gartner (November 2009)

In server shipments, Hewlett-Packard retained its worldwide server shipment lead, as its market share reached 32.1 percent in the third quarter of 2009. Dell maintained the No. 2 ranking as its share totaled 22.8 percent (see Table 2). HP’s shipment performance was driven primarily by its ProLiant brands.

©CIOL Bureau