Feeds

Server makers shift more boxes than cash in Q2

Dell and Sun make gains

  • alert
  • submit to reddit

The essential guide to IT transformation

Strong sales of small one- and two-processor systems again pushed the overall server market higher in the second quarter, according to the latest data from Gartner. Total server sales hit $11.5bn in the period - a year-over-year rise of 7.7 percent. Dell enjoyed its familiar position as the fastest growing vendor, and IBM held onto its lead in overall sales. One surprise in the quarter came courtesy of Sun Microsystems, which showed the strongest uptick in units shipped of any vendor.

"Overall, each region showed positive year-over-year growth in terms of revenue," said Mike McLaughlin, principal analyst for Gartner. "We also saw increased activity in the x86-64 market, as well as continued strong sales in the low-end server market."

In total, revenue figures for the top tier vendors improved only slightly even though there was a significant increase in units shipped. This has been the trend for some time, as large customers still appear to be shying away from purchasing larger, expensive systems.

IBM moved $3.5bn worth of servers in the quarter up from $3.2bn in the same period last year. HP took the second spot with modest 4 percent growth, hitting $3.2bn in sales. Sun captured the third position with $1.5bn in sales up from $1.46 the year before. Dell posted a healthy 20 percent growth up to $1.1bn from $944m, as it edges ever closer to Sun for the third spot. Fujitsu rounded out the top five with $518m in sales up from $484m. All of the major vendors posted strong unit shipment increases during the period. All told, the vendors moved 1.6m units up from the 1.3m shipped last year.

HP's strong ProLiant server business again carried it to the leading position in total shipments. HP moved 463,000 boxes as compared to 377,000 last year. Dell grew at a slightly faster clip - 29 percent - to move 337,000 systems. IBM had the slowest growth among the top four vendors at 19 percent and shipped 238,000 boxes. Sun's shipments increased a whopping 38 percent to 90,000 units from 65,000 last year.

"The past several quarters Dell has experienced the strongest growth rate among the top-tier vendors, however Sun exhibited the highest growth rate (this quarter)," Gartner said. "Sun benefited from an increase in demand from the telco sector for their Netra product line, as well as increased sales of high-end servers to the financial sector."

Sun must be pleased to see its core telco and financial server markets come back. But, while shipments increased dramatically, Sun's revenue total barely moved, confirming the notion that the good, high-margin times have passed. Fujitsu again took the fifth spot with 17 percent growth and 47,000 boxes shipped.

We'll break out the processor numbers when the data rolls in from Gartner. ®

Related stories

Sun salutes Microsoft for delivering Q4 profit
HP maps growth path
Intel's Itanium rockets to 64-bit shipment lead
Life support kicks in for server makers in Q2

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.