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Tuesday, May 28, 2013
Server Shipments And Revenue Declined in First Quarter of 2013


In the first quarter 2013, worldwide server shipments declined 0.7 percent year-on-year, while revenue declined 5.0 percent from the first quarter of 2012, according to Gartner, Inc.

"The first quarter of 2013 was certainly not a strong period for the server market on a global level," said Jeffrey Hewitt, research vice president at Gartner. "The only regions to post increases were Asia/Pacific and the United States, with Asia/Pacific showing the strongest growth with shipment and revenue increases of 7 percent and 1.7 percent, respectively. While these two regions grew in both shipments and revenue, it was not enough to offset the declines of the other geographies--all of which declined in server shipments and revenue for the quarter."

"x86 server shipment growth was flat in the quarter, while revenue increased 1.8 percent. RISC/Itanium Unix servers declined globally for the period, down 38.8 percent in shipments and down 35.8 percent in vendor revenue compared to the same quarter last year. The ?other? CPU category, which is primarily mainframes, exhibited an increase of 3.6 percent in worldwide revenue."

IBM had the lead in the worldwide server market based on revenue. The company totaled just over $3 billion in server vendor revenue worldwide, with a total share of 25.5 percent in the first quarter of 2013. This share was down 2.5 percentage points from the same period in 2012. In the first quarter of 2013, system x accounted for 29.3 percent of IBM's total server revenue.

All of the top five vendors suffered revenue declines in the first quarter of 2013 except for Dell which grew 14.4 percent, Gartner said.

Worldwide: Server Vendor Revenue Estimates, 1Q13 (U.S. Dollars)

Company 1Q13Revenue 1Q13 Market Share (%) 1Q12Revenue 1Q12 Market Share (%) 1Q13-1Q12 Growth (%)
IBM 3,016,060 25.5 3,490,477 28.0 -13.6
HP 2,959,030 25.0 3,455,760 27.8 -14.4
Dell 2,124,462 18.0 1,857,579 14.9 14.4
Fujitsu 583,239 4.9 626,722 5.0 -6.9
Oracle 538,542 4.6 739,826 5.9 -27.2
Others 2,604,390 22.0 2,273,724 18.3 14.5
Total 11,825,724 100.0 12,444,088 100.0 -5.0

Source: Gartner (May 2013)

Worldwide: Server Vendor Shipments Estimates, 1Q13 (Units)

Company

1Q13Shipments

1Q13 Market Share (%)

1Q12Shipments

1Q12 Market Share (%)

1Q13-1Q12 Growth (%)

HP

580,563

24.9

685,015

29.2

-15.2

Dell

516,355

22.2

503,450

21.5

2.6

IBM

230,446

9.9

267,556

11.4

-13.9

Fujitsu

73,375

3.2

86,360

3.7

-15.0

Cisco

53,873

2.3

40,498

1.7

33.0

Others

            874,396

37.5

            763,205

32.5

14.6

Total

2,329,009

100.0

2,346,083

100.0

-0.7

Source: Gartner (May 2013)

In server shipments, HP remained the worldwide leader in the first quarter of 2013 in spite of a year-on-year shipment decline of 15.2 percent. Dell and Cisco were the only vendors in the top five to have positive shipment growth, with increases of 2.6 percent and 33 percent.

In terms of server form factors, blade servers fell 5.9 percent in shipments and 5 percent in revenue for the quarter. The rack-optimized form factor dropped 5.2 percent in shipments and 2 percent in revenue in the first quarter of 2013. "Following a challenging 2012, 2013 started in very much the same way," said Adrian O'Connell, research director at Gartner. "Budgets are restricted and server infrastructure spending is clearly not the highest priority for many organizations."

In the first quarter of 2013, x86 server revenue increased by a modest 1.8 percent. RISC/Itanium Unix server revenue declined by 54.8 percent, due to migrations to alternative platforms by users seeking lower-cost alternatives and more flexibility. Revenue in the Other CPU segment dropped by 9.9 percent, following growth in the fourth quarter of 2012.

Dell and Fujitsu were the only server vendors to exhibit revenue growth in EMEA.


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