Worldwide Server Market Revenues Decrease 7.7% in First Quarter as Market Demand Slows, According to IDC

FRAMINGHAM, Mass. — (BUSINESS WIRE) — May 29, 2013 — According to the International Data Corporation ( IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market decreased 7.7% year over year to $10.9 billion in the first quarter of 2013 (1Q13). This is the fifth time in the previous six quarters that the server market has experienced a year-over-year decline in worldwide revenue. Server unit shipments decreased 3.9% year over year in 1Q13 to 1.9 million units as consolidation continued to be a strategic focus for many large and small customers around the globe.

On a year-over-year basis, volume systems experienced a 3.1% revenue decline. This was only the third time in the previous fourteen quarters that volume system demand declined year over year. At the same time, demand for midrange and high-end systems experienced year-over-year revenue declines of 18.3% and 17.1% respectively in 1Q13. The midrange and high-end markets were impacted by difficult year-over-year compares combined with transitions in the technology refresh cycles typical for these segments.

"Customer demand for new servers is being impacted by ongoing server consolidation, technology transitions, and challenging macroeconomic conditions across the globe. In fact, every geographic region except Asia/Pacific experienced revenue contraction in the quarter," said Matt Eastwood, Group Vice President and General Manager, Enterprise Platforms at IDC. "It is clear that challenging market conditions are increasing the competitive dynamics for server market share globally, particularly since compute represents a critical element of larger IT transformations that continue to reshape broader enterprise IT market opportunities."

Overall Server Market Standings, by Vendor

HP held the number 1 position in the worldwide server market with 26.9% factory revenue share for 1Q13. HP's 14.8% revenue decline included weak demand for x86-based ProLiant servers, which were challenged by competitive pricing pressure, and continued weakness in Itanium-based Integrity server revenue. IBM held the number 2 spot with 25.5% share for the quarter as factory revenue decreased 13.4% compared to 1Q12. Demand for IBM's Power Systems and x86-based System x servers declined year over year while demand for System z improved solidly in the quarter due to the combined effects of a weak year-over-year compare and the continuation of a refresh cycle. Dell maintained the third position with 18.5% factory revenue market share in 1Q13 as factory revenue increased 10.1% compared to 1Q12. Dell gained 3.0 points of worldwide server market share in the quarter, helped in part by strong demand from their density optimized datacenter solutions business. Fujitsu, Oracle, and Cisco ended the quarter in a three-way statistical tie* for the number 4 position with 5.1%, 4.8%, and 4.1% factory revenue share respectively. Fujitsu's 1Q13 factory revenue decreased 8.5% compared to 1Q12 and Oracle experienced a 26.2% year-over-year decline in factory revenue in 1Q13. Cisco's factory revenue was up 34.9% year over year in 1Q13.

Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, First Quarter of 2013

(Revenues are in Millions)

                   
Vendor 1Q13 Revenue

1Q13 Market
Share

1Q12 Revenue

1Q12 Market
Share

1Q13/1Q12
Revenue
Growth

1. HP $2,947 26.9% $3,460 29.2% -14.8%
2. IBM $2,793 25.5% $3,224 27.2% -13.4%
3. Dell $2,028 18.5% $1,842 15.5% 10.1%
4. Fujitsu* $562 5.1% $614 5.2% -8.5%
4. Oracle* $528 4.8% $716 6.0% -26.2%
4. Cisco* $450 4.1% $334 2.8% 34.9%
Others $1,655 14.0% $1,627 14.9% -1.7%
All Vendors $10,936 100% $11,846 100% -7.7%
 

1 | 2 | 3  Next Page »



Review Article Be the first to review this article
True Circuits:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Qualcomm’s Lu Dai: Energetic leadership for Accellera
More Editorial  
Jobs
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
SOC Logic Design Engineer for Global Foundaries at Santa Clara, CA
Technical Marketing Manager Valley for EDA Careers at San Jose, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Sr. Staff Design SSD ASIC Engineer for Toshiba America Electronic Components. Inc. at San Jose, CA
Technical Support Engineer for EDA Careers at Freemont, CA
Upcoming Events
IoT Summit 2017 at Great America ballroom, Santa Clara Convention Center Santa Clara CA - Mar 16 - 17, 2017
SNUG Silicon Valley 2017 at Santa Clara Convention Center Santa Clara CA - Mar 22 - 23, 2017
CDNLive Silicon Valley 2017 at Santa Clara Convention Center Santa Clara CA - Apr 11 - 12, 2017
10th Anniversary of Cyber-Physical Systems Week at Pittsburgh, PA, USA PA - Apr 18 - 21, 2017
DownStream: Solutions for Post Processing PCB Designs
Verific: SystemVerilog & VHDL Parsers
TrueCircuits: IoTPLL



Internet Business Systems © 2017 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy