Server revenue declined 24 percent worldwide in the first quarter as compared to the same period last year, with shipments dropping 24.2 percent, published Gartner in its quarterly recap. All of the top five vendors - IBM, Hewlett-Packard, Dell Inc., Sun Microsystems and Fujitsu/Fujitsu Siemens - experienced double-digit declines during the reported quarter.

“While this was not unexpected, the severity of the decline was greater than predicted on a worldwide level,” said Gartner analyst Jeffrey Hewitt.

Gartner said the margins in the declining server market were the highest ever experienced in the industry year-over-year. All market segments suffered losses, including both x86 and UNIX.

“The ongoing weakness of the global economy affected all server segments. x86-based servers fell 23.9 percent in units and 27.1 percent in revenues. UNIX servers also were impacted in quarterly results with drops of 31.3 percent in units and 20.4 percent in vendor revenues," Hewitt said.

IBM continued to lead the market with $3.1 billion in revenue and a market share of 30.7 percent, marking a 20.4 percent growth drop from the first quarter of 2008.

Numbers for the other top five server vendors in relation to revenue:

• HP: $2.9 billion, 28.8 percent market share, 25.8 percent drop in growth

• Dell: $1.2 billion, 12.2 percent market share, 24.7 percent drop in growth

• Sun: $975,540,776, 9.6 percent market share, 26 percent drop in growth

• Fujitsu: $598,529,005, 5.9 percent market share, 18.3 percent drop in growth

In server shipments:

• HP took the top spot, selling $530,849
• Dell: $382,385
• IBM: $230,984
• Sun: $60,294
• Fujitsu: $59,029

“The outlook for 2009 suggests that it will be a weak year on the whole in the server space, and that from a yearly standpoint, the global server market is unlikely to return to a position of growth until 2010,” said Hewitt.

More Information

Gartner report - June 1, 2009

Gartner: Server Market Reflects Global Economic Slowdown - for final quarter of 2008 [...read more...]

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