Worldwide Server Market Revenues Decline -6.2% in Second Quarter as Market Demand Remains Weak, According to IDC
August 27, 2013
FRAMINGHAM, Mass.--(BUSINESS WIRE)--
According to the International Data Corporation (IDC)
Quarterly Server Tracker, factory revenue in the worldwide server
market decreased -6.2% year over year to $11.9 billion in the second
quarter of 2013 (2Q13). This was the second consecutive quarter of
year-over-year revenue decline, as server market demand continued to
soften in most geographic regions. Server unit shipments decreased -1.2%
year over year in 2Q13 to 2.0 million units, the third consecutive
quarter where year-over-year server shipments have declined.
On a year-over-year basis, volume systems experienced a -2.4% revenue
decline. At the same time, demand for midrange and high-end systems
experienced year-over-year revenue declines of -22.3% and -9.5%
respectively in 2Q13. All three segments were impacted by relatively
difficult year-over-year compares combined with transitions in the
technology refresh cycles.
"Mainstream SMB and enterprise server customers around the world
continue to focus on consolidation, virtualization, and migration
initiatives aimed at increasing efficiency and lowering datacenter
infrastructure costs. At the same time, challenging economic conditions
are dampening demand for new IT projects necessary to grow the server
market globally," said Matt
Eastwood, Group Vice President and General Manager, Enterprise
Platforms at IDC. "It is clear that the competitive dynamics in the
server market remain fierce as the leading server vendors work to offset
weak demand for generally higher margin Unix and blade servers with
lower margin rack and density optimized servers."
Overall Server Market Standings by Vendor
IBM held the number one position in the worldwide server market with
27.9% factory revenue share in 2Q13. IBM experienced a -10.0%
year-over-year decline in factory revenue losing 1.2 points of share
in the quarter on soft demand for System x and Power Systems.
HP held the number two position in the market with 25.9% factory
revenue share following a -17.5% year-over-year decline in factory
revenue resulting in a loss of 3.6 points of factory revenue share. HP
experienced disappointing demand for x86-based ProLiant servers
coupled with continued declines in HP Integrity server demand in the
Dell maintained third place with 18.8% factory revenue market share in
2Q13. Dell's factory revenue increased 10.3% compared to 2Q12, helping
Dell to gain 2.8 points of factory revenue share. Dell now holds its
highest-ever server market share in any quarter.
Oracle maintained the number four position with 6.0% factory revenue
share; Oracle's 2Q13 factory revenue decreased -5.7% compared to 2Q12.
Cisco ended the quarter in the number five market position with 4.5%
factory revenue share following 42.6% year-over-year revenue growth.
With its highest ever market share, Cisco now holds sole possession of
fifth place in the server market, breaking last quarter's statistical
tie with Fujitsu.