Feeds

Life support kicks in for server makers in Q2

IBM surges, Sun stunted

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

The worldwide server market is recovering but in the most modest of proportions.

In the second quarter, server revenue rose 0.2 percent year-on-year to $10.6 billion, IDC said. This slight gain is significant in that it corrects a nine-quarter worldwide revenue decline. It is, however, hardly enough of an uptick to declare a recovery in the hardware business just yet.

Shipments jumped a whopping 17.5 percent in the quarter to more than 1.2 million units, according to IDC. The large rise in units on relatively flat revenue points to an ongoing trend in the market where customers are buying smaller, less-expensive systems. In addition, midrange servers have declined in price over the past two years.

IBM outperformed rivals in the second quarter, regaining its position as the number overall server vendor and making a large leap in revenue. IBM now holds 30.4 percent of the market versus HP's 27.7 percent share. Sun Microsystems takes the third spot with 13.5 percent share, followed by Dell at 9.2 percent and Fujitsu Siemens at 2.7 percent.

IBM kicked server revenue up to $3.23 billion by growing sales 10.12 percent in the quarter. HP was flat with $2.95 billion in sales. Sun had one of its worst quarters in recent memory, coughing up 3.1 points of market share and seeing revenue decline by 18.69 percent to $1.434 billion. Dell and Fujitsu Siemens both enjoyed ten percent revenue growth.

For the first time, x86 servers using Intel and AMD chips outpaced RISC servers in revenue. The x86 market grew 10.7 percent to $4.46 billion versus a 5.2 percent drop in RISC sales to $4.33 billion.

HP is the leading Intel server vendor with 33.1 percent of the market. It beat rivals in Windows, Linux and blade server shipments.

Sun regained its position as the top Unix vendor, holding 33 percent of the market. HP owns 31.4 percent and IBM follows with 24.6 percent share. IBM, however, showed a large surge in revenue, pointing to a continued recovery in its Unix business.

Linux servers far outpaced Windows systems in sales and shipment growth. Linux server revenue jumped 40 percent to $650 million and shipments rose 42 percent. Windows server revenue grew 11.5 percent and shipments rose 21.7 percent.

These trends point to a nice amount of diversity in the server market. Unix servers continue to take up most of the enterprise sales, while Windows and Linux boxes split up the Web and application serving markets. Blade servers have also hit a new high at $100 million in revenue, confirming their increased role in the market.

It's no longer a battle between Unix and Windows only at the top or between RISC and Intel only. AMD's Opteron chip is coming on with some decent high performance computing wins and should be expected to take up an increasing part of the market. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.