Worldwide server shipment declines in Q113

by CXOtoday News Desk    May 28, 2013

Servers

After PC shipments, server shipments also took nosedived in the first quarter of 2013. According to a new report by Gartner Inc, in the first quarter 2013, worldwide server shipments declined 0.7 percent year-on-year, while revenues declined 5.0 percent from the first quarter of 2012.

“The only regions to post increase were Asia-Pacific and the United States, with APAC showing the strongest growth with shipment and revenue increases of 7 percent and 1.7 percent, respectively. However, while these two regions grew in both shipments and revenues, there were declines of the other geographies,” said Jeffrey Hewitt, research vice president at Gartner.

IBM led in the worldwide server market based on revenue. The company totaled just over $3 billion in server vendor revenue worldwide, with a total share of 25.5 percent in the first quarter of 2013. This share was down 2.5 percentage points from the same period in 2012. In the first quarter of 2013, system X accounted for 29.3 percent of IBM’s total server revenue.

All of the top five vendors suffered revenue declines in the first quarter of 2013 except for Dell which grew 14.4 percent.

In server shipments, HP remained the worldwide leader in the first quarter of 2013 in spite of a year-on-year shipment decline of 15.2 percent. Dell and Cisco were the only vendors in the top five to have positive shipment growth, with increases of 2.6 percent and 33 percent.

In terms of server form factors, blade servers fell 5.9 percent in shipments and 5 percent in revenue for the quarter.

“Following a challenging 2012, 2013 started in very much the same way,” said Adrian O’Connell, research director at Gartner. “Budgets are restricted and server infrastructure spending is clearly not the highest priority for many organizations.”

Dell and Fujitsu were the only server vendors to exhibit revenue growth in EMEA. The market environment remains difficult for all vendors, but those most exposed to the enterprise customer segment face the biggest challenges.

“The reality for server vendors is that spending levels are very low and there is severe weakness in the high-end segment. There are still areas of opportunity, but vendors need to be agile and focused on addressing them. The outlook for 2013 remains challenging,” said O’Connell.