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Gartner Says Worldwide Server Shipments Grew 27 Percent and Revenue Increased 14 Percent in the Second Quarter of 2010

   Worldwide server shipments grew 27.1 percent year over year in the second quarter of 2010, while revenue climbed 14.3 percent, according to Gartner, Inc.

“As in the first quarter, the second quarter again demonstrated strong year-on-year growth,” said Jeffrey Hewitt, research vice president at Gartner. “There remained some regional variations, but all geographies demonstrated improving market conditions.”

"x86-based servers grew 28.9 percent in units in the second quarter and 37.0 percent in revenues. RISC/Itanium Unix servers remained constrained, with declines of 16.5 percent in shipments and decreases of 8.8 percent in vendor revenues, compared to the same quarter last year. The 'other' CPU category, which is primarily mainframes, fell 22.8 percent in revenues for the quarter," Mr. Hewitt said.

From the regional standpoint, Eastern Europe grew the most significantly in server shipments, with a 46.9 percent increase in the second quarter of 2010, as well as the highest vendor revenue growth, at 26.2 percent for the period. All other regions had varying shipment and revenue increases.

HP led the worldwide server market based on revenue (see Table 1) — the company posted just over $3.5 billion in server vendor revenue, and accounted for 32 percent of worldwide server revenue for the second quarter of 2010. HP's share was up 3.1 percent year-on-year.

Of the top five global vendors, Dell, Fujitsu and HP all had revenue increases for the second quarter of 2010.

Table 1
Worldwide: Server Vendor Revenue Estimates, 2Q10 (U.S. Dollars)

Company

2Q10

Revenue

2Q10 Market Share (%)

2Q09

Revenue

2Q09 Market Share (%)

2Q09-2Q10 Growth (%)

HP

3,542,849,414

32.0

2,797,312,338

28.9

26.7

IBM

3,061,867,209

27.7

3,146,461,258

32.5

-2.7

Dell

1,803,984,658

16.3

1,293,178,966

13.4

39.5

Oracle

928,500,001

8.4

1,041,672,106

10.8

-10.9

Fujitsu

353,605,651

3.2

321,752,146

3.3

9.9

Other Vendors

1,364,187,334

12.3

1,073,112,404

11.1

27.1

Total

11,054,994,266

100.0

9,673,489,219

100.0

14.3

Source: Gartner (August 2010)

In server shipments, HP remained the worldwide leader in the second quarter of 2010 (see Table 2) with its market share totaling 30 percent, as shipments increased 23.3 percent over the same period last year. This growth was driven by increased produced from HP's ProLiant brand.

Of the top five vendors in server shipments worldwide, Dell, Fujitsu, HP and IBM posted increases in units for the second quarter.

As noted above, the primary driver of the market growth for the quarter remained the x86-based server hardware platform, as it was in the first quarter — there was a marked difference between x86-based servers and non-x86 server platforms for the quarter, with the latter platforms remaining constrained overall. Blade severs had the strongest growth of any form factor, with an increase of 17.8 percent in units and 32.8 percent in vendor revenue for the first quarter.

Table 2
Worldwide: Server Vendor Shipments Estimates, 2Q10 (Units)

Company

2Q10

Shipments

2Q10 Market Share (%)

2Q09

Shipments

2Q09 Market Share (%)

2Q09-2Q10 Growth (%)

HP

644,172

30.0

522,447

31.0

23.3

Dell

542,799

25.3

402,187

23.8

35.0

IBM

267,614

12.5

226,570

13.4

18.1

Fujitsu

60,974

2.8

48,819

2.9

24.9

Oracle

47,968

2.2

64,810

3.8

-26.0

Other Vendors

581,512

27.1

422,371

25.0

37.7

Total

2,145,039

100.0

1,687,204

100.0

27.1

Source: Gartner (August 2010)

In Europe, the Middle East and Africa (EMEA), server shipments surpassed 583,500 units in the second quarter of 2010, an increase of 18.4 percent from the same period last year (see Table 4). Server revenue totaled $3.2 billion in the second quarter of 2010, a growth of 3.7 percent from the same quarter last year (see Table 3).

“The EMEA server market’s recovery continues with typical seasonal patterns being seen with the second consecutive quarter of positive shipment and revenue growth rates,” said Adrian O’Connell, research director at Gartner. “While the market has recorded strong growth, we need to recognize that this is growth from a low base, and the market remains significantly below the pre-downturn levels of 2008. Growth is being driven by the pent-up demand for replacements but ongoing economic concerns continue to limit overall levels of investment.”

In the second quarter of 2010, of the top five vendors, only HP and Dell exhibited growth above the average market growth in shipment terms. HP held the No. 1 position, with shipments growing at 20.7 percent year-on-year. Dell, ranked No. 2, had the strongest shipment growth of the top five vendors, with a 23.3 percent year-on-year increase. Oracle was the only vendor of the top five ranking to show a decline year-on-year.

In the x86 market, total volume in EMEA grew 19.6 percent in the second quarter of 2010. “The x86 market is the engine of growth for server vendors and, although shipment levels remained close to 20 percent lower than in the second quarter of 2008, revenue is only 10 percent lower. Virtualization, although a slight inhibitor on volume levels is helping to drive richer system configurations, which is leading to stronger revenue performance,” said Mr. O’Connell.

Overall, RISC and Itanium Unix revenues declined 22.4 percent in the second quarter of 2010. IBM led the segment in the second quarter of 2010. Despite a decline of 16.5 percent, the vendor increased its share to 36.8 percent in the second quarter of 2010. Oracle declined 33.6 percent but moved to the No. 2 position. HP, ranked No. 3, exhibited a revenue decline of 13.3 percent year-on-year, although the vendor showed the best performance in the segment and subsequently grew its market share by 2.7 percentage points in the second quarter of 2010. Bull and Fujitsu maintained their fourth and fifth places, respectively.

“The first half of 2010 has seen continued challenges for vendors in the server segment of RISC and Itanium Unix. The combination of longer sales cycles for these systems, product refreshes and ongoing economic uncertainty has resulted in RISC/Itanium Unix revenue in the second quarter of 2010 being less than half that of the second quarter of 2008,” said Mr. O’Connell. “We expect this market to improve in the second half of 2010, but vendors in this segment will face an increasingly difficult challenge in minimizing migrations to Windows and Linux platforms.”

Table 3
EMEA: Server Vendor Revenue Estimates, 2Q10 (U.S. Dollars)

Company

2Q10

Revenue

2Q10 Market

Share (%)

2Q09

Revenue

2Q09 Market

Share (%)

2Q09-2Q10

Growth (%)

HP

1,198,773,837

37.5

987,076,991

32.0

21.4

IBM

823,837,731

25.8

933,565,694

30.3

-11.8

Dell

402,288,579

12.6

299,362,037

9.7

34.4

Oracle*

283,192,500

8.9

428,125,437

13.9

-33.9

Fujitsu

183,488,148

5.7

168,625,587

5.5

8.8

Other Vendors

307,187,275

9.6

266,743,832

8.7

15.2

Total

3,198,768,069

100.0

3,083,499,578

100.0

3.7

Source: Gartner (August 2010)

Table 4
EMEA: Server Vendor Shipments Estimates, 2Q10 (Units)

Company

2Q10

Shipments

2Q10 Market

Share (%)

2Q09

Shipments

2Q09 Market

Share (%)

2Q09-2Q10

Growth (%)

HP

241,898

41.5

200,421

40.6

20.7

Dell

111,328

19.1

90,273

18.3

23.3

IBM

63,701

10.9

62,359

12.6

2.2

Fujitsu

36,575

6.3

31,207

6.3

17.2

Oracle

15,473

2.7

24,053

4.9

-35.7

Other Vendors

114,558

19.6

84,743

17.2

35.2

Total

583,533

100.0

493,056

100.0

18.4

Source: Gartner (August 2010) 

Additional information is available to subscribers of Gartner’s Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, sub-brand, CPU type, CPU group, max CPU, platform, price band, operating system and distribution channel.

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