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While global server shipments dropped for the third quarter, Gartner believes that the market is showing signs of stability
NC News Network, December 1, 2009, 1130 hrs
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. Worldwide server revenues totaled $10.7 billion for the quarter, as worldwide servers shipments reached 1.2 million units.
"It is important to put the yearly declines into perspective,” said Jeffrey Hewitt, research vice president at Gartner. “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 5 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)
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Company
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3Q09
Revenue
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3Q09 Market Share (%)
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3Q08
Revenue
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3Q08 Market Share (%)
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3Q08-3Q09 Growth (%)
|
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IBM
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3,383,768,798
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31.7
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3,856,826,095
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30.6
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-12.3
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HP
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3,219,767,761
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30.2
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3,793,197,226
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30.1
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-15.1
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Dell
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1,424,751,880
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13.4
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1,500,603,160
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11.9
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-5.1
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Sun Microsystems
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784,566,516
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7.4
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1,158,251,731
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9.2
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-32.3
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Fujitsu
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550,276,517
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5.2
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616,753,331
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4.9
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-10.8
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Other Vendors
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1,296,196,855
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12.2
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1,683,452,756
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13.4
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-23.0
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Total
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10,659,328,327
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100.0
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12,609,084,300
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100.0
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-15.5
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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.
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)
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Company
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3Q09
Shipments
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3Q09 Market Share (%)
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3Q08
Shipments
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3Q08 Market Share (%)
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3Q08-3Q09 Growth (%)
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HP
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615,694
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32.1
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724,024
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31.2
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-15.0
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Dell
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437,447
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22.8
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500,470
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21.6
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-12.6
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IBM
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246,493
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12.8
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308,524
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13.3
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-20.1
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Fujitsu
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66,953
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3.5
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73,578
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3.2
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-9.0
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Sun Microsystems
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50,435
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2.6
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81,522
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3.5
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-38.1
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Other Vendors
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503,497
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26.2
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629,864
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27.2
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-20.1
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Total
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1,920,519
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100.0
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2,317,981
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100.0
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-17.1
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Source: Gartner (November 2009)
Indian Server Market
Overall, the Indian server market totaled at around US$118Mn during this quarter registering a year-on-year decline of 28.3 percent. This market decline could be partly contributed to the sluggish economic situation coupled with seasonality observed around this quarter. Gartner expects that the OND quarter should be much better primarily fuelled by a lot of pent up demand coupled with year end buying. Overall, Hewlett Packard emerged as the market leader followed by IBM and Sun Microsystems. HP and IBM were the worst affected vendors due to the limited market server demand during this quarter in India.
x86 servers accounted for around 59 percent of the market revenue leading to a revenue increase of 4.4 percent, as compared to last quarter. This further suggests that India CIO’s have started selective purchase of servers, which can be considered as early signal of economic recovery. India companies have undertaken a lot server refresh and consolidation projects. Virtualization has been a key driver for such deployments in large as well as mid-market territory. On the other side, non x86 segment of the server witnessed a sequential decline of 35.9 percent this quarter. Some of the large projects seem to be deferred for the next quarter.
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