Worldwide server market grows by 2.6 percent YoY in Q4 '09: Gartner

DQW Bureau
New Update



the fourth quarter of 2009, worldwide server shipments grew 4.5

percent YoY, while revenue fell 3.2 percent, according to Gartner.


recovery that began in the third quarter of 2009 based on x86

servers, extended into the fourth quarter. However, as the fourth

quarter of 2008 was quite weak, the fourth quarter of 2009 did not

have to produce huge x86 server numbers to result in an increase. At

the same time, other segments like RISC, Itanium Unix and mainframes

remained constrained and that exerted downward pressure on overall

vendor revenue results,” said Jeffrey Hewitt, VP-Research,


Hewitt revealed, “Blade

servers pushed ahead with a growth of 11.1 percent in shipments and

22.1 percent in vendor revenue for the period. RISC, Itanium Unix

servers, on the other hand, dropped 30.5 percent in shipments and

fell 20 percent in revenue in the fourth quarter."


Regions that grew in

shipments were Asia Pacific, the Middle-East and Africa, and the US,

at 19.6, 13.4, and 9 percent, respectively. And, Canada, Eastern

Europe, Japan, Latin America and Western Europe experienced shipment

declines of 9.4, 13.3, 1.7, 6.8, and 4 percent, respectively.



While Asia Pacific, Latin

America, and the Middle-East and Africa witnessed 9.1, 22.1, and 9.4

percent, growth in vendor revenue respectively, Canada, Eastern

Europe, Japan, the US and Western Europe had sales declines of 1.7,

26.2, 6.7, 5.1, and 9.2 percent, respectively.

According to the report,

IBM continued to lead the worldwide server market based on revenue.

In the fourth quarter of 2009, while IBM's server revenue was about

$4.1 billion, reflecting a 5.9 percent YoY decline, its marketshare

was 32.7 percent, a one percent decline. IBM's System x grew, while

System p and System z posted declines for the quarter.


Of the top five global

vendors, HP, Dell and Fujitsu grew in revenue for the quarter while

IBM and Sun posted declines. In server shipments, HP remained the

worldwide leader for the fourth quarter of 2009 with a YoY shipment

increase of 3.8 percent. The ProLiant brand showed growth in

shipments while all of its other brands fell in Q4 2009 compared to

Q4 2008. Of the top 10 vendors in server shipments worldwide, all but

NEC and Sun had shipment increases for the period.

The results for the

quarter were centered around demand for x86 servers which increased

in shipments by 6.3 percent, and in revenue by 14.3 percent for Q4

2009. The year 2009 was highly challenging for the worldwide server

space. Worldwide server shipments declined 16.6 percent in 2009

compared to 2008, while 2009 server revenue declined 18.3 percent

from 2008.

Blade servers posted a

revenue increase of 1.3 percent and a shipment decrease of 11.4

percent for the year. HP was the 2009 leader with blade servers at

46.8 percent shipment share. IBM was in the #2 position at 28.2

percent. These two vendors continued to dominate this form factor.


The outlook for 2010

suggests a return to shipment growth in the middle or high single

digits and revenue growth at a slightly lower level. These increases

are being buffered by the use of x86 server virtualization to

consolidate physical machines as they are replaced.

In Europe, the

Middle East and Africa (EMEA), server shipments surpassed 676,000

units in the fourth quarter of 2009, a decline of four percent from

the same period last year. Server revenue totaled $3.9 billion in Q4

2009, a decline of 9.8 percent from the same quarter last year . In

the x86 market, total volumes in EMEA declined 2.6 percent compared

to Q4 2008.

and Itanium Unix revenues declined 22 percent in the fourth quarter

of 2009. Sun led the segment in the fourth quarter despite a decline

of 28 percent and a loss of two percent revenue share YoY. HP ranked

#2, exhibited a revenue decline of 31 percent YoY, while IBM in the

#3 position saw its revenue decline nine percent.

In 2009, the second half

outpaced the first half in both shipment or revenue terms as the

server market began to recover. HP maintained its #1 position in

shipment terms, improving share by 1.3 percent from 2008. Although

Dell and IBM lost marketshare by less than one percent each, they

maintained their respective #2 and #3 positions. In revenue terms, HP

remained the market leader improving share along with second-placed

IBM by 0.3 percent. Sun, in the #3 position lost one percent share

declining 33 percent in 2009.

In the first quarter of

2010, Gartner foresees a continued improvement in server market

demand, primarily driven by the x86 segment.