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STAMFORD, Conn., February 21, 2008 View All Press Releases

Gartner Says Worldwide Server Shipments Experienced 7 Percent Growth, While Industry Revenue Posted a 4 Percent Increase in 2007

Worldwide server shipments in 2007 increased 7.4 percent from 2006, while worldwide server revenue grew 3.8 percent in 2007, according to Gartner, Inc.

“The server market did exhibit growth for the fourth quarter and for the year as a whole,” said Jeffrey Hewitt, research Vice President at Gartner. “In fact, the fourth quarter climbed almost 11 percent in shipments and just under 3 percent in revenues in spite of the fact that there have been concerns about a slowdown due to downturns in certain economic sectors of particular geographies.”

“RISC-Itanium Unix servers fell on a global basis for 2007 at 13.8 percent in shipments but grew 1.7 percent in revenue for the year,” Mr. Hewitt said. “Comparatively, mainframes showed an 11.8 percent revenue decline which can be attributed to a slow period in the replacement cycle timing for this server class.”

IBM continued to lead the worldwide server market based on revenue (see Table 1). The company ended the year with an overall slight increase in revenue (0.8 percent for 2007). Gartner analysts attribute the company’s performance to a 10.2 percent growth in System x and a 9.1 percent growth in System p while System z and System i revenue both dropped 9.6 percent for the year.

Of the top five global vendors, Dell, HP, IBM and Sun all had revenue increases for the year, while Fujitsu/Fujitsu Siemens was the only one to have a slight decline.

Table 1
Worldwide: Server Vendor Revenue Estimates, 2007 (U.S. Dollars)

Company

2007

Revenue

2007 Market Share (%)

2006

Revenue

2006 Market Share (%)

2006-2007 Growth (%)

IBM

17,041,096,436

31.1

16,901,487,016

32.0

0.8

Hewlett-Packard

15,516,745,894

28.3

14,255,392,676

27.0

8.8

Dell Inc.

6,263,714,094

11.4

5,535,623,318

10.5

13.2

Sun Microsystems

5,908,320,759

10.8

5,710,444,135

10.8

3.5

Fujitsu/FSC

2,472,311,780

4.5

2,509,004,791

4.8

-1.5

Other Vendors

7,602,005,981

13.9

7,891,597,805

14.9

--3.7

Total

54,804,194,944

100.0

52,803,549,741

100.0

3.8

Source: Gartner Dataquest (February 2008)

In server shipments, Hewlett-Packard remained the worldwide leader for 2007 (see Table 2). Its shipment growth was a solid 16.6 percent. The ProLiant brand grew 17.2 percent in shipments for the year while HP Integrity climbed 56.8 percent and HP NonStop went up 13.8 percent. All other HP brands declined for the period, which when combined with the gains of the other brands, produced the overall final result.

Of the top 10 vendors in server shipments worldwide, only three did not have shipment increases for the year—IBM, NEC and Sun.

Table 2
Worldwide: Server Vendor Shipments Estimates, 2007 (Units)

Company

2007

Shipments

2007 Market Share (%)

2006

Shipments

2006 Market Share (%)

2006-2007 Growth (%)

Hewlett-Packard

2,636,522

29.8

2,261,091

27.5

16.6

Dell

1,894,837

21.4

1,783,445

21.7

6.2

IBM

1,282,638

14.5

1,293,825

15.7

-0.9

Sun Microsystems

338,048

3.8

368,603

4.5

-8.3

Fujitsu/FSC

292,486

3.3

256,796

3.1

13.9

Other Vendors

2,396,521

27.1

2,270,224

27.6

5.6

Total

8,841,052

100.0

8,233,984

100.0

7.4

Source: Gartner Dataquest (February 2008)

Blade servers continue to be a high-growth segment with a revenue increase of 44.5 percent and a shipment increase of 19.9 percent for the year. HP was the 2007 leader with blades at a 41.7 percent shipment share, with IBM being in second place at 30.9 percent. These two vendors continued to dominate this form factor and totaled almost 78 percent of the worldwide blade revenue share for 2007.

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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