FRAMINGHAM, Mass. — (BUSINESS WIRE) — February 26, 2014 — According to the International Data Corporation ( IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market decreased -4.4% year over year to $14.2 billion in the fourth quarter of 2013 (4Q13). This was the fourth consecutive quarter of year-over-year revenue decline, as server market demand remained weak ahead of a forthcoming refresh cycle, which is expected to emerge in early 2014. Worldwide server shipments increased 8.2% to 2.5 million units in 4Q13 when compared with the same year-ago period. For the full year 2013, worldwide server revenue decreased -4.4% to $49.7 billion when compared to 2012, while worldwide unit shipments increased 3.2% to 9.0 million units, a record high.
On a year-over-year basis, volume systems experienced 8.0% revenue growth to $10.2 billion in 4Q13. At the same time, demand for midrange and high-end systems experienced sharp year-over-year revenue declines of -19.6% and -28.5% to $1.2 billion and $2.8 billion, respectively, in 4Q13. The volume segment was aided by a continued expansion of x86-based hyperscale server infrastructures.
"While a record number of servers shipped in 4Q13, the market was constrained by weak demand for midrange and high-end systems. The market continues to be impacted by enterprise focus on 2nd platform workload consolidation, which at this point in time is only partially offset by 3rd Platform hyperscale server deployments around the globe," said Matt Eastwood, Group Vice President and General Manager, Enterprise Platforms at IDC. "2nd Platform workloads continue to represent a healthy profit pool for server vendors targeting consolidation opportunities across the market. However, new profit pools in the 3rd Platform are emerging that create new market opportunities for OEMs and ODMs. IDC believes this market transformation requires increased focus from vendors in order to best capitalize on these diverging market trends."
Overall Server Market Standings, by Vendor
HP and IBM were statistically tied* for the number 1 position in the worldwide server systems market. HP had 26.9% market share in factory revenue for 4Q13, as revenue increased 5.7% year over year to $3.8 billion. HP experienced improvements in demand for its x86-based ProLiant servers, particularly in the U.S. IBM had 26.8% market share for the quarter as revenue decreased -28.5% year over year to $3.8 billion in 4Q13. IBM experienced significant year-over-year declines in quarterly revenue for all three families of systems System x, POWER Systems, and System z mainframes. Dell server revenue declined -2.4% year over year to $2.1 billion, maintaining third place with 14.5% factory revenue market share in 4Q13. Cisco and Oracle ended the quarter in a statistical tie for the number 4 market position with 4.5% and 4.1% factory revenue share, respectively.
Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, Fourth Quarter of 2013 (Revenues are in Millions)