Servers up 7.6% in Q1 2008

Worldwide server shipments for Q1 2008 increased 7.6% over Q1 2007, while worldwide server revenue for the same period climbed 4.3%, according to Gartner. Worldwide server revenues totaled $13.6 bln for the quarter, as worldwide servers shipments reached just under 2.3 mln units. RISC-Itanium Unix servers fell in shipments but showed a small amount of growth in revenue. In this segment, shipments fell 8.4% while revenue grew 3.7% for the quarter.

Top 5 EMEA Server Vendors in Q4 2007

Though IBM managed to retain the top spot in the calendar quarter, HP emerged as the top vendor in 2007 with strong growth of 12.3%, managing to eclipse IBM for the first time on an annual basis since the acquisition of Compaq. HP’s growth in Q4 2007 was strongest in the ProLiant and Integrity areas, with Integrity revenue, including its NonStop products, now accounting for 24.6% of the total vendor revenue. IBM benefited from a robust uptake of both its Unix System p and x86 System x families in the last quarter of the year. Fujitsu Siemens Computers enjoyed very positive Primergy performance in southern Europe and finished the full year with a 1.8% revenue growth. Sun Microsystems saw revenue grow strongly in the SPARC Enterprise area, and Dell had strong growth across all geographies, particularly in France and Spain.

Vendor Revenue, Q4 2006 Share, Q4 2006 Revenue, Q4 2007 Share, Q4 2007 Growth, YTY
IBM $1,974 37.4% $1,966 36.0% -0.4%
Hewlett-Packard $1,631 30.9% $1,752 32.1% 7.4%
Sun Microsystems $554 10.5% $586 10.7% 5.7%
Dell $380 7.2% $425 7.8% 11.9%
Fujitsu Siemens $357 6.8% $340 6.2% -4.9%
Others $378 7.1% $394 7.2% 4.3%
Total market $5,274 100% $5,463 100% 3.5%
Source: IDC

Global server market grew 2.4% to $15.7 bln in Q3 2007

Factory revenue in the worldwide server market grew 2.4% YTY to $15.7 bln in Q3 2007, marking the seventh consecutive quarter of positive growth, according to IDC. Worldwide server unit shipments grew 9.0% YTY in Q4 2007. For the full year 2007, worldwide server revenue grew 3.6% to $54.4 bln, while worldwide unit shipments grew 6.7% to 8.0 mln units. This represents the highest annual server revenue since the market peaked in 2000 with factory revenue of more than $61.6 bln.

Windows servers up 12.8% in Q4 2007, Linux up 8%

x86 servers saw their revenue market share grow from 45.9% in Q4 2006 to 49% in Q4 2007, according to IDC. Sales of Windows and Linux grew 12.8% and 8% respectively. While Unix performance remained strong, growing revenue by 3.1% annually, it is Windows that is now the clear market share leader with 35.7% or the total EMEA revenue. Both z/OS and i5/OS saw their revenue decrease by 9.1% and 3.9% respectively. Blades growth continued unabated with sales going up 55% annually and approaching the half-billion dollar mark. Pedestal servers are the single most important segment with 50.2% of the total revenue in Q4 2007, despite negative annual revenue growth.

EMEA server market in 2007

Vendor Revenue, 2006 Share, 2006 Revenue, 2007 Share, 2007 Growth, YTY
Hewlett-Packard $5,412 32% $6,078 34% 12.3%
IBM $5,604 33.1% $5,580 31.2% -0.4%
Sun Microsystems $1,985 11.7% $2,092 11.7% 5.4%
Dell $1,309 7.7% $1,508 8.4% 15.3%
Fujitsu Siemens $1,261 7.2% $1,283 7.5% 1.8%
Others $1,342 7.9% $1,323 7.4% -1.5%
Total market $16,912 100% $17,863 100% 5.6%
Source: IDC, 2008

Server factory revenue grew by 3.6% in Q4 2007

Server factory revenue grew by 3.6% in annual comparison, to $5.46 bln, while shipments rose 7.3%, to more than 750,000, in Q4 2007 over Q4 2006 in EMEA, according to IDC. For the whole of 2007, market growth was robust, with factory revenue rising 5.6% annually, to reach $17.86 bln, and shipments growing 8.9% to over 2.6 mln. Multicore, virtualization, and blades are all contributing to the strong uptake of volume servers, which are gaining favor with SMB and enterprise customers alike, a market trend translated into a factory revenue share of 49.6% of the total in EMEA in Q4 2007 and a growth of 6.5% annually.

Global servers market in Q4 2007

IBM held onto its #1 spot in the worldwide server systems market with 36.7% market share in factory revenue for Q4 2007, growing factory revenue by 0.5% YTY, according to IDC. HP maintained the #2 spot with 27.7% share for the quarter, growing revenue 6.3% compared to Q4 2006. Dell and Sun ended the quarter in a statistical tie for third place with factory revenue market share of 10.1% and 9.3% respectively. Dell experienced 6.8% revenue growth compared with Q4 2006, while Sun experienced a YTY revenue decline of 2.4% in Q4 2007. Fujitsu-Siemens, experienced a 7.1% increase in factory revenue holding 4.3% revenue share in Q4 2007. HP maintained the #1 spot in the server blade market in 4Q07 with 47.7% revenue share. IBM finished second with 32.5% revenue share.

Vendor Q4 2007 Revenue Q4 2007 Share Q4 2006 Revenue Q4 2006 Share Growth, YTY
IBM $5,752 36.7% $5,724 37.5% 0.5%
Hewlett-Packard $4,337 27.7% $4,081 26.7% 6.3%
Dell $1,580 10.1% $1,480 9.7% 6.8%
Sun $1,457 9.3% $1,493 9.8% -2.4%
Fujitsu Siemens $666 4.3% $ 622 4.1% 7.1%
Other $1,860 11.9% $1,875 12.3% -0.8%
Total $15,653 100.0% $15,275 100.0% 2.5%
Source: IDC

x86 server market grew 7.6% in Q4 2007

The x86 server market continued to grow in Q4 2007, increasing 7.6% in the quarter to $7.8 bln in worldwide revenues, according to IDC. Unit shipment growth also accelerated, growing a healthy 10.3% YTY to 2.1 mln servers as customers continued to refresh and expand their IT infrastructures. For the full year 2007, worldwide x86 server revenue grew 10.4% to $28.7 bln, while worldwide x86 unit shipments grew 8.3% to 7.6 mln units. HP outpaced the market in Q4 2007, growing factory revenue 12.0% and gaining x86 market share in the process. HP led the market with 35.0% revenue share while IBM and Dell tied for second place with each vendor securing about 20% revenue share.

Top global server vendors in 2007

Vendor 2007 Revenue 2007 Share 2006 Revenue 2006 Share Revenue growth, YTY
IBM $17,336 31.9% $17,154 32.7% 1.1%
HP $15,415 28.3% $14,255 27.1% 8.1%
Dell $ 6,145 11.3% $5,467 10.4% 12.4%
Sun $ 5,861 10.8% $5,749 10.9% 1.9%
Fujitsu $ 2,676 4.9% $2,691 5.1% -0.5%
Other $ 6,988 12.8% $7,209 13.7% -3.1%
Total $54,421 100.0% $52,525 100.0% 3.6%
Source: IDC