SINGAPORE, May 30, 2011 View All Press Releases

Gartner Says Asia Pacific Server Shipments Up 21 Percent in First Quarter of 2011

Revenue Increased 29 Percent Year-on-Year; Top Five Vendors Grew Strongly



The Asia Pacific server market continued to show robust growth in the first quarter of 2011, with shipment growth of 21 percent compared to the same quarter last year, according to Gartner, Inc.  Server revenue increased 29 percent year-on-year.

The double digit year-on-year growth in both shipments and revenue in Asia Pacific market achieved during the first quarter resulted in the sixth consecutive quarter of growth. Asia Pacific was the second fastest growing region after Eastern Europe.

Mainframe customers in countries such as Singapore, China, Taiwan and Korea continued to invest during the first quarter 2011, which together with demand for higher end servers in RISC and x86 segments, contributed significantly to overall market growth in those countries. By annual comparison, overall server revenue in Singapore increased 63 percent during the first quarter while it was up 37 percent in China. Similarly, Taiwan and Korea saw server revenue grow by 31 percent and 21 percent respectively. Spending on RISC and x86 servers continued to play key roles in Hong Kong during the quarter. Total server shipments in Hong Kong climbed 15 percent and revenue grew 21 percent year-on-year. Australia managed to grow modestly, with server revenue up 10 percent this quarter, although shipments fell 5 percent from the same quarter in 2010.

“Enterprise spending on server consolidation using virtualization technology continued to be a key driving factor for server market growth in this region,” said Erica Gadjuli, principal research analyst at Gartner. “At the same time x86-based server sales showed excellent growth in Asia Pacific, up 21 percent in shipments and 31 percent in revenue from the same quarter in 2010. The IT investments by key verticals such as financial services and the public sector, driven by positive business sentiment, led to another healthy year-on-year revenue growth in mainframe and RISC/Itanium Unix servers, which grew 137 percent and 15.3 percent respectively, during the first quarter.”

“As we expected, blade servers, including x86 and non-x86 based, grew the fastest – up 38 percent by shipments and 68 percent in revenue year-on-year – compared to other server form factors, namely rack mountable, rack optimized and tower/standalone.” HP continued to lead this segment with 40 percent and 51 percent share of shipments and revenue, correspondingly.

HP led the server market by shipments with 30 percent share overall in Asia Pacific while IBM held the leadership position in revenue, accounting for 41 percent of the total market (see Table 1 and 2). All top five vendors in this region had their share of success during the quarter with both shipment and revenue experienced double digit growth year-on-year.

Table 1: Asia Pacific: Server Vendor Revenue Estimates, 1Q11 (U.S. Dollars Thousands)

Top 5 Vendors by Vendor Revenue - Asia Pacific	1Q11	1Q10	1Q11Market Share (%)	1Q10 Market Share (%)	Year-Over-Year Growth (%)
IBM	951,436	690,121	41.1%	38.6%	37.9%
HP	671,537	587,265	29.0%	32.9%	14.4%
Dell	287,624	227,607	12.4%	12.7%	26.4%
Oracle	146,291	98,908	6.3%	5.5%	47.9%
Dawning	35,324	18,655	1.5%	1.0%	89.4%
Others	222,655	165,314	9.6%	9.3%	34.7%
All Servers	2,314,865	1,787,871	100.0%	100.0%	29.5%

Source: Gartner (May 2011)

Table 2: Asia Pacific: Server Vendor Shipments Estimates, 1Q11 (Units)

Top 5 Vendors by Shipments - Asia Pacific	1Q11	1Q10	1Q11Market Share (%)	1Q10 Market Share (%)	Year-Over-Year Growth (%)
All Servers	461,502	382,230	100.0%	100.0%	20.7%
HP	138,417	118,444	30.0%	31.0%	16.9%
Dell	100,713	88,554	21.8%	23.2%	13.7%
IBM	92,593	76,576	20.1%	20.0%	20.9%
Lenovo	23,541	13,000	5.1%	3.4%	81.1%
Huawei Technologies Co., Ltd	17,200	12,672	3.7%	3.3%	35.7%
Others	89,038	72,984	19.3%	19.1%	22.0%

Source: Gartner (May 2011)

Additional information is available to subscribers of Gartner Dataquest’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 systems and distribution channels.

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• Gartner
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• susan.moore@gartner.com

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