30-05-2014, 11:15 #1
[EN] HP Leads Worldwide Server Market Revenue, IDC Says
Server unit shipments are up 2.1 percent year-over-year in Q1 214 to 2.1 million units, according to the IDC Worldwide Quarterly Server Tracker report released on Wednesday. This increase is despite growing consolidation that has offset investments in hyperscale data center capacity.
According to the report, factory revenue in the worldwide server market dropped 2.2 percent to $10.9 billion, making Q1 2014 the fifth consecutive quarter that the server market has experienced a year-over-year decline in worldwide revenue. In Q4 2013 in Europe, specifically, factory revenue reached $3.7 billion, down 5.2 percent over Q4 2012.
In terms of vendors, HP held the top spot in the worldwide server market with 26.5 percent factory revenue share for Q1 2014. Stable demand for x86-based ProLiant servers and weakness in Itanium-based Integrity server revenue accounted for HP’s 2 percent revenue decline.
IBM took a 19.1 percent share for the quarter as factory revenue decreased more than 25 percent year-over-year, with demand for x86 based System x servers and System z mainframes declining sharply. Dell rounded out the third spot with 18 percent factory revenue market share in Q1 2014.
“The server market continues to be heavily influenced by the emergence of the 3rd Platform as mobile, cloud, big data, and social enablement drive significant hyperscale server deployments globally,” Matt Eastwood, group vice president and general manager, Enterprise Platforms at IDC. “At the same time, traditional client-server workloads continue to drive investment in private cloud facilitation as traditional SMB and enterprise customers drive consolidation and automation deeper into their environments. The net effect is an increasing concentration of computing power into fewer and larger enterprise and service provider data centers around the world.”
Demand for x86 servers improved in the first quarter with revenues increasing 4.9 percent year-over-year in Q1 to $8.9 billion worldwide. HP led this market with 29.6 percent revenue share, and Dell had 22 percent revenue share.
Non-x86 servers, on the other hand, experienced a revenue decline of 25.2 percent year-over-year to $2 billion, representing 17.9 percent of quarterly server revenue. IBM leads non-86 server revenue with a 57.2 percent revenue share.
30-05-2014, 11:27 #2Top Server Market Findings
- Demand for x86 servers improved in 1Q14 with revenues increasing 4.9% year over year in the quarter to $8.9 billion worldwide as unit shipments increased 2.5% to 2.1 million servers. HP led the market with 29.6% revenue share based on 0.4% revenue growth over 1Q13. Dell retained second place, securing 22.0% revenue share.
- Non x86 servers experienced a revenue decline of -25.2% year over year to $2.0 billion representing 17.9% of quarterly server revenue. This was the eleventh consecutive quarter of revenue decline in the non-x86 server segment. IBM leads the segment with 57.2% revenue share following a year-over-year revenue decline of -31.0% when compared with the first quarter of 2013.
- Blade servers, which are highly leveraged in enterprise's virtualized environments, increased 2.3% year over year to $2.0 billion. Blades now account for 18.0% of total server revenue. HP maintained the number 1 spot in the blade server market in 1Q13 with 43.7% revenue share; Cisco held the second position in the blade market with 24.4% revenue share; and IBM held the third position with 12.3% revenue share.
- Density Optimized servers, utilized by large heterogeneous datacenters, experienced weaker demand in 1Q14. Revenue declined -10.8% year over year in 1Q14 to $649 million as unit shipments decreased -6.0% to 215,567 servers. Density Optimized servers now represent 6.0% of all server revenue and 10.4% of all server shipments.
"Market observers should not be fooled by the decline in density optimized server revenue this quarter," said Kuba Stolarski, Research Manager, Servers at IDC. "This quarter's decline in density optimized sales is indicative of temporarily lower demand from one or two very large customers who utilize density optimized servers for particular workloads. The demand should return shortly, at which point density optimized servers will return to growth. Furthermore, the decline in density should not be misinterpreted as an indicator of overall cloud Hyperscale server demand. Although dense form factors are used extensively in large cloud Hyperscale environments, many of the largest cloud service providers continue to favor rack-optimized servers in their datacenters."
IDC's Server Taxonomy
IDC's Server Taxonomy maps the eleven price bands within the server market into three price ranges: volume servers, midrange servers and high-end servers. The revenue data presented in this release is stated as factory revenue for a server system. IDC presents data in factory revenue to determine market share position. Factory revenue represents those dollars recognized by multi-user system and server vendors for ISS and upgrade units sold through direct and indirect channels and includes the following embedded server components: Frame or cabinet and all cables, processors, memory, communications boards, operating system software, other bundled software and initial internal and external disk shipments.