HP, IBM Lead Worldwide Server Market Demand: IDC Report

By Nathan Eddy  |  Print this article Print

HP held the top position in the worldwide server market with 31.5 percent factory revenue share for Q1 2011.

Revenue in the worldwide server market increased 12.1 percent year over year to $11.9 billion in the first quarter of 2011 (1Q11), according to IT research firm IDC. This is the fifth consecutive quarter of year-over-year revenue growth, as server market demand continued to improve around the world. The company’s report found server unit shipments increased 2.5 percent year over year in 1Q11 to 1.9 million units, which is the second highest quarterly total ever reported in the first calendar quarter of any year.

HP held the top position in the worldwide server market with 31.5 percent factory revenue share for 1Q11. HP's 10.8 percent revenue growth was led by improved demand for both x86-based ProLiant servers and Itanium-based Integrity servers. IBM held the number two spot with 29.2 percent share for the quarter as factory revenue increased 22.1 percent compared to 1Q10 and gained 2.4 points of share from a year ago. IBM experienced "significant improvement" for its Power Systems, while demand for System z servers and x86-based System x servers also remained strong.

Dell maintained third place with 15.6 percent factory revenue market share in 1Q11 factory revenue increased 9.7 percent compared to 1Q10 driven in part by strong demand from SMB customers, while Oracle, which completed the one-year anniversary of its Sun Microsystems acquisition on January 27, maintained the number four position with 6.5 percent factory revenue share in 1Q11. Oracle's 1Q11 factory revenue increased 13.6 percent compared to 1Q10, driven in part by improved demand for SPARC-based servers.

Fujitsu rounded out the top five with 4.8 percent factory revenue share following a 15.6 percent year-over-year decline in server revenue. Finally, IDC initiated coverage of Cisco's UCS server platform in the 1Q11 Server Tracker. Cisco maintained 1.6 percent factory revenue share overall, with particular strength in x86-based blades in North America.

"Meaningful enterprise infrastructure refresh occurred across all geographies in the quarter. Although the public sector weakened, worldwide demand for servers across hosters, SMBs, and enterprise customers remained strong. This was the fourth consecutive quarter with double-digit year-over-year revenue growth as the market recovery extended from x86 servers to midrange Unix to high-end mainframe class systems for the first time in nearly three years," said Matt Eastwood, group vice president of enterprise platforms at IDC.

"This is evidence that heterogeneous systems remain critically important to customers addressing a wide range of workload needs in their datacenters," he explained. "As we moved into 2011, IDC predicted the technology refresh cycle would extend from volume- to value-oriented systems with somewhat longer planning horizons, and this is clearly happening."