IBM leads server market based on revenue share in Q3 2012, while HP is # player on shipments

Infotech Lead India: IBM leads the global server market based on revenue share in Q3 2012, according to Gartner, while IDC said HP is the number one player based on shipments.

IDC said IBM has 28.7 percent factory revenue share. IBM reported 7.6 percent year-over-year decline in factory revenue losing 1.1 points of share in the quarter on soft demand for System z ahead of a recently announced product transition.

HP has 27.3 percent factory revenue share following an 11.9 percent year-over-year revenue decline. HP experienced declines in HP Integrity server demand combined with relatively weak performance in their x86-based ProLiant server business, according to IDC.

“Worldwide server revenue declined for the fourth consecutive quarter in 3Q12. The market was constrained by poor macro-economic conditions in many geographies coupled with a number of technology transitions that served to further hamper the market,” said Matt Eastwood, group vice president and general manager, Enterprise Platforms at IDC.

Every geographic region except Asia/Pacific experienced revenue contraction in the quarter. The growth in Asia/Pacific was largely driven by strong demand in China, which helped a China-based server vendor – Inspur – into a top 10 factory revenue position for the first time.

According to Gartner, HP remained the worldwide leader in server shipments in the third quarter of 2012 despite an 8.4 percent decrease in shipments. This decline was driven primarily by declining revenue in HP’s ProLiant and Integrity brands. HP’s worldwide server shipment share was 25.8 percent.

Gartner said server shipments grew 3.6 percent year-on-year, while revenue decreased 2.8 from the third quarter of 2011.

Of the top 5 vendors in server shipments worldwide, Dell and Cisco were the only vendors to experience an increase in shipments.

Jeffrey Hewitt, research vice president at Gartner, said: “Only the North America and Asia/Pacific regions managed any revenue growth, and even those were essentially flat year to year, with North America showing a 1.1 percent increase and Asia/Pacific a 0.7 percent increase. The picture in terms of shipments was slightly more positive with North America, Latin America and Asia/Pacific all growing, but both EMEA and Japan continue to struggle and both saw shipments contract, compared to the same period last year.”

FORECAST

IDC expects a short-term easing in the high-end market’s decline as technology refreshes, including Intel’s Poulson update to its Itanium line, begin to take their course. However, mission critical applications continue to migrate to x86 platforms, placing increasing pressure on the high-end server market.

According to Gartner, against a backdrop of continued economic and business challenges, EMEA remains the weak spot for global server sales.

Adrian O’Connell, research director at Gartner, said: “Each of the three EMEA sub regions saw revenue contract: Western Europe by 7.6 percent, Eastern Europe by 11.8 percent, and the Middle East and Africa by 14.0 percent. We’re not seeing signs of demand weakening significantly, but EMEA continues to present a very challenging environment for server vendors to operate in.”

Vendors are under constant pressure to deliver the most effective execution. With limited overall demand, they will have to consider competitive migrations as their best opportunities for growth and market share gains. This year’s fourth quarter might not be an especially festive period for every server vendor.

 

Worldwide: Server Vendor Revenue Estimates, 3Q12 (U.S. Dollars)

Company 3Q12

Revenue

3Q12 Market Share ( percent) 3Q11

Revenue

3Q11 Market Share ( percent) 3Q12-3Q11 Growth ( percent)
IBM 3,479,454,267 27.6 3,846,807,802 29.6 -9.5
HP 3,330,804,391 26.4 3,802,440,046 29.3 -12.4
Dell 2,099,469,317 16.7 1,903,221,687 14.7 10.3
Oracle 592,040,000 4.7 763,610,285 5.9 -22.5
Fujitsu 494,121,545 3.9 605,009,267 4.7 -18.3
Other Vendors 2,610,962,610 20.7 2,053,375,210 15.8 27.2
Total 12,606,852,131 100.0 12,974,464,297 100.0 -2.8

Source: Gartner (November 2012)

Worldwide: Server Vendor Shipment Estimates, 3Q12 (Units)

Company 3Q12

Shipment

3Q12 Market Share ( percent) 3Q11

Shipment

3Q11 Market Share ( percent) 3Q12-3Q11 Growth ( percent)
HP 634,793 25.8 693,265 29.2 -8.4
Dell 564,475 23.0 517,867 21.8 9.0
IBM 280,424 11.4 287,507 12.1 -2.5
Fujitsu 76,128 3.1 79,072 3.3 -3.7
Cisco 55,973 2.3 39,864 1.7 40.4
Other Vendors 846,734 34.4 756,022 31.9 12.0
Total 2,458,527 100.0 2,373,596 100.0 3.6

Source: Gartner (November 2012)

EMEA: Server Vendor Revenue Estimates, 3Q12 (Millions of U.S. Dollars)

Company 3Q12

Revenue

3Q12 Market Share ( percent) 3Q11

Revenue

3Q11 Market Share ( percent) 3Q12-3Q11 Growth ( percent)
HP 1,083,893,433 36.6 1,301,580,579 40.0 -16.7
IBM 697,969,730 23.6 756,439,235 23.3 -7.7
Dell 454,751,400 15.4 414,500,382 12.7 9.7
Fujitsu 192,858,138 6.5 204,955,661 6.3 -5.9
Oracle 171,691,600 5.8 242,828,070 7.5 -29.3
Other Vendors 359,313,506 12.1 331,419,006 10.2 8.4
Total 2,960,477,807 100.0 3,251,722,932 100.0 -9.0

Source: Gartner (November 2012)

EMEA: Server Vendor Shipment Estimates, 3Q12 (Units)

Company 3Q12

Shipment

3Q12 Market Share ( percent) 3Q11

Shipment

3Q11 Market Share ( percent) 3Q12-3Q11 Growth ( percent)
HP 233,538 39.6 254,457 42.0 -8.2
Dell 119,443 20.3 120,145 19.8 -0.6
IBM 70,712 12.0 67,102 11.1 5.4
Fujitsu 31,738 5.4 39,173 6.5 -19.0
Cisco 11,756 2.0 7,901 1.3 48.8
Other Vendors 122,613 20.8 117,743 19.4 4.1
Total 589,800 100.0 606,521 100.0 -2.8

Source: Gartner (November 2012)

 

 

Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, Third Quarter of 2012
(Revenues are in $ Millions)
                   
Vendor 3Q12
Revenue
3Q12 Market
Share
3Q11
Revenue
3Q11 Market
Share
3Q12/3Q11
Revenue
Growth
1. IBM $3,502 28.7 percent $3,789 29.8 percent -7.6 percent
2. HP $3,339 27.3 percent $3,792 29.8 percent -11.9 percent
3. Dell $2,086 17.1 percent $1,929 15.2 percent 8.2 percent
4. Oracle $588 4.8 percent $764 6.0 percent -23.1 percent
5. Fujitsu $465 3.8 percent $598 4.7 percent -22.2 percent
Others $2,238 18.3 percent $1,854 14.6 percent 20.7 percent
All Vendors $12,219 100 percent $12,727 100 percent -4.0 percent

Source: IDC Worldwide Quarterly Server Tracker, November 2012.

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