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Server Market Shows Signs of Stabilizing, IDC and Gartner Report Despite Decline in Third Quarter Sales December 3, 2009, Volume 142, Issue 1
Server sales are beginning to stabilize, reports IDC and Gartner in analyses on the July-September period. The IT research and advisory firms both found revenue down in the worldwide server market during the third quarter of 2009, however the decrease was less than anticipated and demonstrated an increase over the first and second quarters of this year. IDC's WORLDWIDE QUARTERLY SERVER TRACKER
According to IDC, factory revenue in the worldwide server market fell 17.3 percent from the same quarter in 2008, to $10.4 billion in the third quarter. But revenue for volume servers improved over the second quarter and experienced their lowest drop since the third quarter of 2008. Server shipments also improved, falling only 17.9 percent for the quarter, compared with 30.1 percent in the second quarter. Shipments grew 12.4 percent over the second quarter, which is the market's largest sequential quarterly gain since 2005. "It could be that we're seeing a return to spending faster than we initially thought, or it could be that purchases got delayed from Q2 into Q3," said IDC analyst Jed Scaramella. "We think Q1 and Q2 was the bottom of the recession, and we're on a slow, steady recovery." Top Five Vendors
1) IBM
2) HP
3) Dell
4) Sun
5) Fujitsu
Others
All Vendors
Click here for more information on the IDC report. GARTNER, INC.
Gartner numbers show server revenue overall dropped 15.5 percent from the third quarter last year, to $10.7 billion. But it was up by 10.2 percent compared to the second quarter this year. All of the top vendors, except for Sun, saw their server revenue improve from the second quarter. The uncertainty surrounding Sun's acquisition by Oracle has hurt the vendor. Sun's server revenue was down 32.3 percent from the third quarter last year, much more than its main rivals, according to Gartner. It remained the top seller of UNIX systems by volume, but its lead was pared down from a year earlier as shipments declined by almost half. In terms of dollars spent, HP overtook Sun to become the second-largest UNIX vendor behind IBM. HP grew its share of UNIX systems revenue from 28 percent to 29.3 percent, while Sun's declined from 29.2 percent to 24.2 percent, Gartner said. IBM's share increased from 36.4 percent to 40.9 percent. The UNIX server market overall was worth $2.6 billion, a drop of 21.2 percent from the third quarter last year. "It is important to put the yearly declines into perspective,” said Jeffrey Hewitt, research vice president at Gartner. “Looking at the third quarter results from the sequential perspective, they showed an increase of 13.8 percent in shipments and 10.2 percent in revenues when compared to the second quarter of this year. That suggests that the market as a whole is showing signs of stabilization as we move toward the end of 2009.” Server Vendor Revenue Estimates, 3Q09 (U.S. Dollars)
1) IBM
2) HP
3) Dell
4) Sun
5) Fujitsu
Others
Total
Server Vendor Shipment Estimates, 3Q09 (Units)
1) HP
2) Dell
3) IBM
4) Fujitsu
5) Sun
Other Vendors
Total
Click here for more information on the Gartner report.
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We think Q1 and Q2 was the bottom of the recession, and we're on a slow, steady recovery. 
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Server Market Shows Signs of Stabilizing, IDC and Gartner Report
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