IBM server market share slips to 19% from 25% in Q1 2014, HP retains: IDC

IBM server market share has slipped to 19 percent from 25 percent in the first quarter (Q1 2014), while HP retained its share at 26.5 percent, said IDC.

Server market share of Dell dipped marginally to 18 percent from 18.2 percent, while Cisco increased to 5.7 percent from 4 percent.

However, HP faced revenue decline of 2 percent, IBM 25.4 percent and Dell 3.2 percent, while Cisco revenue rose 37 percent in the first quarter.

IBM sever market share in Q1 2014

IDC said HP’s 2 percent revenue decline included stable demand for x86-based ProLiant servers and continued weakness in Itanium-based Integrity server revenue.

Demand for IBM’s x86-based System x servers and System z mainframes declined sharply year over year.

Cisco, Fujitsu, and Oracle ended the quarter in a three-way statistical tie for the number 4 position with 5.7 percent, 5.0 percent, and 4.9 percent factory revenue share respectively.

Server shipments in Q1 2014

Global server market dips

IDC said factory revenue in the worldwide server market decreased 2.2 percent year over year to $10.9 billion in the first quarter of 2014. Server unit shipments improved 2.1 percent to 2.1 million units as investments in hyperscale datacenter capacity were largely offset by consolidation, which continued to be a strategic focus for many large and small customers around the globe.

The midrange and high-end markets were impacted by difficult year-over-year comparisons combined with transitions in the technology refresh cycles typical for these segments, said IDC

“The server market continues to be heavily influenced by the emergence of the 3rd Platform as mobile, cloud, big data, and social enablement drive significant hyperscale server deployments globally,” said Matt Eastwood, group vice president and general manager, Enterprise Platforms at IDC.

IDC said client-server workloads continue to drive investment in private cloud facilitation as traditional SMB and enterprise customers drive consolidation and automation deeper into their environments. The net effect is an increasing concentration of computing power into fewer and larger enterprise and service provider datacenters around the world.

InfotechLead News Team

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