Gartner Says Worldwide Server Revenue Shows Modest Growth in Third Quarter of 2004
Server Shipments Grew 16 Percent in the Quarter
STAMFORD, Conn., November 24, 2004 — Worldwide server revenue surpassed $11.8 billion in the third quarter of 2004, a 6 percent increase from the third quarter of 2003, according to Gartner, Inc.
"The server market is still being primarily driven by the x86 segment," said Mike McLaughlin, principal analyst for Gartner. "That, along with the acceptance of Linux in additional application areas in the enterprise space will continue to drive demand."
IBM held its lead based on server revenue, as its market share remained at 32 percent in the third quarter of 2004 (see Table 1). Dell continues to lead all major vendors in growth, as this quarter Dell had 17 percent revenue growth, overtaking Sun Microsystems for the third spot overall.
Table 1
Worldwide Server Vendor Revenue Estimates for 3Q04 (Millions of U.S. Dollars)
Company
3Q04 Revenue
3Q04 Market Share (%)
3Q03 Revenue
3Q03 Market Share (%)
3Q03-3Q04 Growth (%)
IBM
3,768
31.9
3,551
31.8
6.1
Hewlett-Packard
3,285
27.8
3,083
27.6
6.6
Dell
1,163
9.8
994
8.9
17.0
Sun Microsystems
1,129
9.5
1,160
10.4
-2.7
Fujitsu/FSC
652
5.5
621
5.6
5.0
Others
1,825
15.4
1,746
15.7
4.5
Total
11,822
100.0
11,155
100.0
6.0
Source: Gartner Dataquest (November 2004)
Worldwide server shipments surpassed 1.6
million units in the third quarter of 2004, a 16.3 percent increase from the
same period last year (see Table 2). Hewlett-Packard led all vendors with
468,924 units shipped in the third quarter. Dell experienced the strongest
growth rate among the top 5 vendors, as shipments increased 25 percent from
last year.
Table 2
Worldwide Server Vendor Unit Shipment Estimates for 3Q04 (Units)
Company
3Q04 Shipments
3Q04 Market Share (%)
3Q03 Shipments
3Q03 Market Share (%)
3Q03-3Q04 Growth (%)
Hewlett-Packard
468,924
28.5
407,293
28.8
15.1
Dell
346,917
21.1
277,582
19.6
25.0
IBM
265,459
16.1
219,991
15.5
20.7
Sun
Microsystems
75,607
4.6
79,135
5.6
-4.5
Fujitsu/FSC
60,572
3.7
54,114
3.8
11.9
Others
428,078
26.0
376,690
26.6
13.6
Total
1,645,557
100.0
1,414,805
100.0
16.3
Source: Gartner Dataquest (November 2004)
Linux continued to be the growth leader among operating systems (OS) in both revenue
and units. Linux grew revenue 55.7 percent from last year, and increased units
by 45.2 percent. Windows gained another 2 points in market share for all
operating systems over the third quarter of 2003, earning 36.5 percent of all
revenue, or about $4.3 billion for the quarter.
Both Unix and "Other OS" categories continues their slow decline, with a revenue
decreasing 3.6 percent for Unix, and 5.8 percent for "Other OS" in the third
quarter. Both OS categories lost 3 points of market share.
Gartner will now track x86-32 and x86-64 CPU based servers as "x86." With the emergence
of Intel's EM64T processor to compete with AMD's Opteron, the x86 market is
slowly shifting from 32-bit to 64-bit enabled. This market grew 14 percent in
revenue and 18 percent in shipments on a worldwide level in the third quarter
of 2004. RISC systems was the only CPU category that showed a year-over-year decline,
with revenue down 10 percent down to $4 billion in the third quarter of 2004.
Table 3
EMEA Server Vendor Revenue
Estimates for 3Q04 (Millions of U.S Dollars)
Company
3Q04 Vendor Revenue
3Q04 Market Share (%)
3Q03 Vendor Revenue
3Q03 Market Share (%)
3Q03-3Q04 Growth (%)
Hewlett-Packard
1,161
33.4%
1,039
30.9%
11.8%
IBM
1,098
31.6%
1,128
33.5%
-2.6%
Sun Microsystems
322
9.3%
322
9.6%
0.0%
Fujitsu/FSC
305
8.8%
303
9.0%
0.5%
Dell
239
6.9%
210
6.2%
14.0%
Others
352
10.1%
365
10.8%
-3.7%
EMEA
3,478
100.0%
3,368
100.0%
3.3%
Source: Gartner Dataquest (November 2004)
Table 4
EMEA Server Vendor Shipment Estimates for 3Q04 (Units)
Company
3Q04 Shipments
3Q04 Market Share (%)
3Q03 Shipments
3Q03 Market Share (%)
3Q03-3Q04 Growth (%)
Hewlett-Packard
173,939
37.2%
148,430
37.8%
17.2%
IBM
84,778
18.1%
66,249
16.9%
28.0%
Dell
73,710
15.8%
55,660
14.2%
32.4%
Fujitsu/FSC
35,218
7.5%
31,385
8.0%
12.2%
Sun Microsystems
22,260
4.8%
22,246
5.7%
0.1%
Others
77,753
16.6%
68,620
17.5%
13.3%
Total EMEA
467,658
100.0%
392,590
100.0%
19.1%
Source: Gartner Dataquest (November 2004)
In Europe Middle East and Africa (EMEA), the server revenue market reached $3.5 billion
in the third quarter of 2004, a 3 percent increase from the third quarter of
2003. Shipments totaled 468 thousand units, a 19 percent increase from the
third quarter of 2004.
According to Adrian O'Connell, principal analyst at Gartner in EMEA, "Although shipment growth dipped below the twenty percent level for the first time in six consecutive quarters, this was still a very positive quarter. The replacement cycle continues to drive volumes, but we are seeing indications of strength across the market. Demand
was particularly strong in Spain, Switzerland and Eastern Europe."
The x86 segment was also strong in EMEA. Revenues in this segment grew by 18 percent compared to the same quarter last year. The higher end of the market was weaker, with the Unix market declining by 6 percent in revenues, although results varied significantly between the vendors.
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