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.
