IBM Tops Shrinking Server Sales, But Blades Is Hot Spot

(Revenues are in Millions)

Vendor

2008 Revenue

2008 Market Share

2007 Revenue

2007 Market Share

2008/2007 Revenue Growth

1. IBM

$16,988

31.9%

$17,336

31.4%

-2.0%

2. HP

$15,751

29.5%

$16,041

29.1%

-1.8%

3. Dell

$6,199

11.6%

$6,261

11.4%

-1.0%

4. Sun

$5,377

10.1%

$5,868

10.6%

-8.4%

5. Fujitsu/FSC

$2,566

4.8%

$2,676

4.9%

-4.1%

Others

$6,451

12.1%

$6,949

12.6%

-7.2%

All Vendors

$53,332

100.0%

$55,130

100.0%

-3.3%

It will get worse before the server market improves, late this year or early 2010.

According to IDC’s Worldwide Quarterly Server Tracker released today, worldwide server revenue declined 3.3% to $53.3 billion, while worldwide unit shipments grew 2.0% to 8.1 million units, for the full year 2008.

This is the first time the server market exceeded 8 million units in a calendar year, reflecting continued demand for new physical servers even as virtualization makes significant gains in the enterprise, said IDC.

“In the near term, IT customers will increasingly look for IT optimization projects with strong ROI potential and extend virtualization, consolidation, and migration programs in order to lower capital and operational costs while improving efficiencies,” said Matthew Eastwood, group vice president of IDC’s Enterprise Platforms Group in a statement.

Blade servers are hottest products in slowing server market

One bright spot is the market for blade servers – slim computers that slide into a chassis – for which revenues grew 33.3% year over year to $5.4 billion in 2008.

H-P maintained the number 1 spot in the server blade market last quarter with 54.8% revenue share and IBM finished second with 21.7% revenue share. Sun, Dell, and Fujitsu/Fujitsu-Siemens all significantly outperformed the market with year-over-year revenue growth of more than 60% respectively.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 32 other followers