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Gartner Says Worldwide Server Shipments Grew 1.5 Percent in the First Quarter of 2012 While Revenue Declined 1.8 Percent

Worldwide server shipments grew 1.5 percent in the first quarter of 2012, while server revenue declined 1.8 percent year over year, according to Gartner, Inc.

“The first quarter of 2012 produced relatively weak shipment growth on a global level with a variation in results by region,” said Jeffrey Hewitt, research vice president at Gartner. “All regions showed growth in server shipments except Western Europe which posted a decline of 6.4 percent. In terms of revenue, Asia/Pacific, Middle East/Africa, and Western Europe posted declines. These results are not that surprising considering the current variations in regional economic conditions.”

“x86 servers forged ahead and grew 1.7 percent in units in the first quarter of 2012 and 5.6 percent in revenue. RISC/Itanium Unix servers declined 5.7 percent in shipments and dropped 15.2 percent in vendor revenue compared to the same quarter last year. The ‘other’ CPU category, which is primarily mainframes, showed a decline of 16.4 percent in vendor revenue,” Mr. Hewitt said.

From a regional standpoint, Eastern Europe grew the most significantly in shipments with a 16.0 percent increase. Japan posted the highest vendor revenue growth at 10.6 percent for the period. 

IBM had the lead in the worldwide server market based on revenue (see Table 1)--the company posted nearly $3.5 billion in server vendor revenue for a total share of 28.1 percent worldwide for the first quarter of 2012. IBM’s server revenue declined 7.2 percent. Most of IBM’s revenue contribution came from its Power Systems brand with some contribution by System x as well.

Among the top five global server vendors, Fujitsu was the only company to post positive revenue growth (at 4.5 percent).

Table 1
Worldwide: Server Vendor Revenue Estimates, 1Q12 (U.S. Dollars)

Company

1Q12

Revenue

1Q12 Market Share (%)

1Q11

Revenue

1Q11 Market Share (%)

1Q12-1Q11 Growth (%)

IBM

3,490,477,200

28.1

3,761,762,079

29.7

-7.2

HP

3,455,759,513

27.8

3,826,499,364

30.2

-9.7

Dell

1,857,578,951

14.9

1,892,881,243

14.9

-1.9

Oracle

739,825,931

5.9

798,599,723

6.3

-7.4

Fujitsu

618,818,853

5.0

591,959,434

4.7

4.5

Other Vendors

2,275,395,408

18.3

1,798,805,381

14.2

26.5

Total

12,437,855,857

100.0

12,670,507,223

100.0

-1.8

Source: Gartner (May 2012)

In server shipments, HP remained the worldwide leader in the first quarter of 2012 (see Table 2) with relatively flat shipment growth (-0.4 percent). This decline was driven primarily by drops in HP’s ProLiant and Integrity brands. HP’s worldwide server shipment share was 29.2 percent in the first quarter of 2012.

Fujitsu and Cisco were the two vendors among the top five to experience server shipment growth in the first quarter of 2012 (see Table 2).

In terms of server form factors, blade servers fell 1.3 percent in shipments and grew 5.6 percent in revenues for the quarter. The rack-optimized form factor climbed 0.4 percent in shipments and fell 5.3 percent in revenue for the first quarter of 2012.

 Table 2
Worldwide: Server Vendor Shipments Estimates, 1Q12 (Units)

Company

1Q12

Shipments

1Q12 Market Share (%)

1Q11

Shipments

1Q11 Market Share (%)

1Q12-1Q11 Growth (%)

HP

685,015

29.2

687,502

29.7

-0.4

Dell

503,450

21.5

508,650

22.0

-1.0

IBM

267,556

11.4

272,238

11.8

-1.7

Fujitsu

86,360

3.7

76,648

3.3

12.7

Cisco

40,498

1.7

23,690

1.0

70.9

Other Vendors

763,205

32.5

742,970

32.1

2.7

Total

2,346,083

100.0

2,311,698

100.0

1.5

Source: Gartner (May 2012)

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 systems and distribution channels.

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