STAMFORD, Conn., March 17, 2008 View All Press Releases

Gartner Says Financial Services Industry Led Vertical Markets for Worldwide Server Revenue in 2007

The financial services industry (including three major subsegments: investment services, banking and insurance) continued to lead all vertical markets in server revenue, as it accounted for 25.3 percent of worldwide server revenue in 2007, according to Gartner, Inc.

The communications market was a distant No. 2 for server revenue with 14.4 percent of global server revenue (see Table 1). However, the sector’s growth (11.3 percent year over year) outpaced all other major verticals in 2007 because of spending increases on network upgrades and strong broadband demands. The government market was the No. 3 vertical, with 11.5 percent of total server revenue.

“The recent U.S. credit crunch negatively impacted the U.S. financial services sector's server spending toward the end of 2007. Large projects were delayed or reduced into smaller projects because of financial institutions’ weak financial performances and concern over the economic outlook," said Kiyomi Yamada, principle research analyst at Gartner. “However, we did not see serious spending cuts on a global basis. Many financial institutions need to continue to invest in their servers to gain competitive advantages through their IT infrastructure upgrades.”

Table 1
Top 3 Vertical Markets in Worldwide Server Revenue, 2007 (Millions of U.S. Dollars)

	2007 Revenue	2007 Market Share (%)	2006 Revenue	2006 Market Share (%)	2007-2006 Growth (%)
Financial Services	13,892.2	25.3	13,237.7	25.1	4.9
Communications	7,865.7	14.4	7,068.2	13.4	11.3
Government	6,352.5	11.6	6,086.7	11.5	4.4
Others	26,693.8	11.6	26,410.9	50.0	4.4
Grand Total	54,804.1	100.0	52,803.5	100.0	3.8

Source: Gartner (March 2008)

IBM was the leading vendor in the financial services market as well as in the government market (see Table 2). HP was the No.1 vendor in the communication market, with a growth rate of 20.8 percent, compared with last year.

Table 2
Top Vendors in Top 3 Verticals, Worldwide Server Revenue, 2007 (Millions of U.S. Dollars)

	Top Server Vendor by Vertical	2007 Revenue	2007 Market Share (%)	2006 Revenue	2006 Market Share (%)	2007-2006 Growth (%)
Financial Services	IBM	6,088.36	43.8	5,903.12	44.6	3.1
Communications	HP	3,152.99	40.1	2,610.45	36.9	20.8
Government	IBM	2,352.25	37.0	2,174.23	35.7	8.2

Source: Gartner (March 2008)

Additional information is available to subscribers of Gartner’s Servers Quarterly Statistics Vertical Industries Add-On program. This program provides worldwide market size and share data by vendor revenue and unit shipments by 13 vertical industries. Segments include: region, vendor, CPU group, operating systems and business size.

 

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