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Asia Pacific Server Market Continued Double Digit Growth in Third Quarter of 2011, Says Gartner

Shipments Increased 23.9 Percent; Revenue Up 18.5 Percent Year-On-Year

 The Asia Pacific server market continued its double digit growth in the third quarter of 2011, with year-on-year shipment growth of 23.9 percent and revenue up 18.5 percent compared to the same quarter last year, according to Gartner, Inc.

“Asia Pacific remained the strongest region for server shipment growth during the third quarter of 2011,” said Gartner principle analyst Erica Gadjuli. “Greater China (China, Hong Kong and Taiwan in combined) ruled 69.7 percent of the region’s total market, up 2 points from the same quarter last year.”

Server shipments in other major markets in Asia Pacific experienced double digit growth year on year: 20 percent in Australia, 14 percent in South Korea and 18 percent in Singapore. Meanwhile vendor revenue rose moderately from the same quarter last year with 6 percent growth each in Australia and Singapore and 2 percent in South Korea.

Asia Pacific as a region recorded the fastest year-on-year growth in the x86 server platform during the quarter, up 29 percent in revenue and 25 percent in shipments. Besides the virtualization implementation on x86 servers that forged ahead in this region, demand from internet companies continued to be part of the main driver for server growth, especially in China. Revenue from RISC/Itanium Unix servers increased 11 percent from the same quarter of 2010, fostered by core infrastructure build out predominantly in the financial and telecommunication sectors.

Despite a modest increase of 8 percent in unit shipments, blades saw more rapid growth in revenue (14.5 percent) compared to the same quarter of 2010. For the period, rack optimized servers climbed the fastest with 32 percent in shipment and 22 percent in revenue.

Tables 1 and 2 show the top five vendors in Asia Pacific server market for the quarter. HP remains the leader in shipments with 25 percent of the total market and IBM led by revenue with 42 percent share. Lenovo more than doubled its revenue from the same quarter of 2010, as shown in Table 1, driven mainly by its aggressive move in China across all major verticals. Similarly, Dell was second in-line in witnessing a robust year on year growth in the third quarter, owing its success mostly to Internet companies buying its DCS offerings.

Table 1: Asia Pacific: Server Vendor Revenue Estimates, 3Q11 (Thousands of U.S. Dollars)

 

3Q11

3Q10

3Q11Market Share (%)

3Q10 Market Share (%)

Year-Over-Year Growth (%)

IBM

1,085,854

928,422

41.8%

42.3%

17.0%

HP

661,749

642,520

25.5%

29.3%

3.0%

Dell

360,290

252,479

13.9%

11.5%

42.7%

Oracle

133,632

130,170

5.1%

5.9%

2.7%

Lenovo

82,038

31,271

3.2%

1.4%

162.4%

Others

            275,099

            208,905

10.6%

9.5%

31.7%

TOTAL

2,598,662

2,193,766

100.0%

100.0%

18.5%

Source: Gartner (November 2011)

 

Table 2: Asia Pacific: Server Vendor Shipments Estimates, 3Q11 (Units)

 

3Q11

3Q10

3Q11Market Share (%)

3Q10 Market Share (%)

Year-Over-Year Growth (%)

HP

136,589

124,211

25.2%

28.4%

10.0%

Dell

120,145

93,296

22.2%

21.3%

28.8%

IBM

114,842

92,613

21.2%

21.2%

24.0%

Lenovo

41,730

22,380

7.7%

5.1%

86.5%

Huawei Technologies Co., Ltd

23,916

21,120

4.4%

4.8%

13.2%

Others

            104,889

             83,876

19.4%

19.2%

25.1%

TOTAL

542,111

437,496

100.0%

100.0%

23.9%

Source: Gartner (November 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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