Worldwide server market revenues decrease 7.7% in first quarter
TweetFollow Us on Twitter

Worldwide server market revenues decrease 7.7% in first quarter

According to the International Data Corporation (IDC) research group (www.idc.com), factory revenue in the worldwide server market decreased 7.7% year over year to US$10.9 billion in the first quarter of 2013 (1Q13).

This is the fifth time in the previous six quarters that the server market has experienced a year-over-year decline in worldwide revenue. Server unit shipments decreased 3.9% year over year in 1Q13 to 1.9 million units as consolidation continued to be a strategic focus for many large and small customers around the globe.

On a year-over-year basis, volume systems experienced a 3.1% revenue decline. This was only the third time in the previous fourteen quarters that volume system demand declined year over year. At the same time, demand for midrange and high-end systems experienced year-over-year revenue declines of 18.3% and 17.1% respectively in 1Q13. The midrange and high-end markets were impacted by difficult year-over-year compares combined with transitions in the technology refresh cycles typical for these segments.

"Customer demand for new servers is being impacted by ongoing server consolidation, technology transitions, and challenging macroeconomic conditions across the globe. In fact, every geographic region except Asia/Pacific experienced revenue contraction in the quarter," says Matt Eastwood, Group Vice President and General Manager, Enterprise Platforms at IDC. "It is clear that challenging market conditions are increasing the competitive dynamics for server market share globally, particularly since compute represents a critical element of larger IT transformations that continue to reshape broader enterprise IT market opportunities."

HP held the number 1 position in the worldwide server market with 26.9% factory revenue share for 1Q13. HP's 14.8% revenue decline included weak demand for x86-based ProLiant servers, which were challenged by competitive pricing pressure, and continued weakness in Itanium-based Integrity server revenue.

IBM held the number 2 spot with 25.5% share for the quarter as factory revenue decreased 13.4% compared to 1Q12. Demand for IBM's Power Systems and x86-based System x servers declined year over year while demand for System z improved solidly in the quarter due to the combined effects of a weak year-over-year compare and the continuation of a refresh cycle.

Dell maintained the third position with 18.5% factory revenue market share in 1Q13 as factory revenue increased 10.1% compared to 1Q12. Dell gained 3.0 points of worldwide server market share in the quarter, helped in part by strong demand from their density optimized datacenter solutions business. Fujitsu, Oracle, and Cisco ended the quarter in a three-way statistical tie for the number 4 position with 5.1%, 4.8%, and 4.1% factory revenue share respectively. Fujitsu's 1Q13 factory revenue decreased 8.5% compared to 1Q12 and Oracle experienced a 26.2% year-over-year decline in factory revenue in 1Q13. Cisco's factory revenue was up 34.9% year over year in 1Q13.

 
AAPL
$105.22
Apple Inc.
+0.39
GOOG
$539.78
Google Inc.
-4.20
MSFT
$46.13
Microsoft Corpora
+1.11
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Rami Ismail Opens Up distribute​() for D...
Rami Ismail Opens Up distribute​() for Developers Posted by Jessica Fisher on October 24th, 2014 [ permalink ] Rami Ismail, Chief Executive of Business and Development at indie game studio | Read more »
Great Hitman GO Goes on Sale and Gets Ne...
Great Hitman GO Goes on Sale and Gets New Update – Say That Three Times Fast Posted by Jessica Fisher on October 24th, 2014 [ permalink ] | Read more »
Rival Stars Basketball Review
Rival Stars Basketball Review By Jennifer Allen on October 24th, 2014 Our Rating: :: RESTRICTIVE BUT FUNUniversal App - Designed for iPhone and iPad Rival Stars Basketball is a fun mixture of basketball and card collecting but its energy system will annoy.   | Read more »
Rubicon Development Makes Over a Dozen o...
Rubicon Development Makes Over a Dozen of Their Games Free For This Weekend Only Posted by Jessica Fisher on October 24th, 2014 [ permalink ] | Read more »
I Am Dolphin Review
I Am Dolphin Review By Jennifer Allen on October 24th, 2014 Our Rating: :: NEARLY FIN-TASTICUniversal App - Designed for iPhone and iPad Swim around and eat nearly everything that moves in I Am Dolphin, a fun Ecco-ish kind of game.   | Read more »
nPlayer looks to be the ultimate choice...
Developed by Newin Inc, nPlayer may seem like your standard video player – but is aiming to be the best in its field by providing high quality video play performance and support for a huge number of video formats and codecs. User reviews include quotes such as “I have tested many apps but this one is my only official player for all my iDevice,” “I... | Read more »
Fighting Fantasy: Caverns of the Snow Wi...
Fighting Fantasy: Caverns of the Snow Witch Review By Jennifer Allen on October 24th, 2014 Our Rating: :: CLASSY STORYTELLINGUniversal App - Designed for iPhone and iPad Fighting Fantasy: Caverns of the Snow Witch is a sterling release from Tin Man Games, as per usual.   | Read more »
A Few Days Left (Games)
A Few Days Left 1.01 Device: iOS Universal Category: Games Price: $3.99, Version: 1.01 (iTunes) Description: Screenshots are in compliance to App Store's 4+ age rating! Please see App Preview for real game play! **Important: Make sure your device is supported! A Few Days Left supports iPhone 4s or newer, iPad 3 or newer. The... | Read more »
Toca Boo (Education)
Toca Boo 1.0.2 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0.2 (iTunes) Description: BOO! Did I scare you!? My name is Bonnie and my family loves to spook! Do you want to scare them back? Follow me and I'll show you how!SCARE | Read more »
Intuon (Games)
Intuon 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: Join the battle with your intuition in a new hardcore game Intuon! How well do you trust your intuition? Can you find a needle in a haystack? Can you reveal the truth among the lies? Intuition is your weapon!* Challenge!* Guess!* Win... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.