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
$128.46
Apple Inc.
-1.96
GOOG
$558.40
Google Inc.
+2.92
MSFT
$43.85
Microsoft Corpora
-0.21
MacNews Search:
Community Search:
view counter

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

Get The Whole Story – Lone Wolf Complete...
Get The Whole Story – Lone Wolf Complete is Now Available and On Sale Posted by Jessica Fisher on February 27th, 2015 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Check Out the Trailer for the Upcoming F...
Check Out the Trailer for the Upcoming FINAL FANTASY: Record Keeper Posted by Jessica Fisher on February 26th, 2015 [ permalink ] DeNA and Square Enix have announced that | Read more »
Legacy Quest is an Upcoming Rouge-like T...
Legacy Quest is an Upcoming Rouge-like That’ll Kill the Whole Family Posted by Jessica Fisher on February 26th, 2015 [ permalink ] Nexon Co. | Read more »
Grudgeball: Enter the Chaosphere Review
Grudgeball: Enter the Chaosphere Review By Jordan Minor on February 26th, 2015 Our Rating: :: MUSCLE MENUniversal App - Designed for iPhone and iPad Regular Show gets an above average game.   | Read more »
Action RPG League of Angels – Fire Raide...
Gaia is being invaded by the Devil Prince and the demonic Devil Army at his disposal, and it’s up to you and your avatar to defeat him in League of Angels – Fire Raiders. Raise a mighty army from hundreds of recruitable angel heroes and take the fight to the Devil Prince as you endeavor to liberate the lands of Gaia. The very best gear will be... | Read more »
Burn Rubber on the Ice With a New Cars:...
Burn Rubber on the Ice With a New Cars: Fast as Lightning Update Posted by Jessica Fisher on February 26th, 2015 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
AdVenture Capitalist Review
AdVenture Capitalist Review By Jordan Minor on February 26th, 2015 Our Rating: :: DAS KAPITALUniversal App - Designed for iPhone and iPad An inadvertent Marxist manifesto.   | Read more »
Monster vs Sheep Review
Monster vs Sheep Review By Jennifer Allen on February 25th, 2015 Our Rating: :: SAMEY FUNUniversal App - Designed for iPhone and iPad What Monster vs Sheep lacks in variety it makes up for with stress relieving fun. At least, for a little while.   | Read more »
Is Your Face Ready for the New Outwitter...
Is Your Face Ready for the New Outwitters 2.0 Trailer? Posted by Jessica Fisher on February 25th, 2015 [ permalink ] One Man Left Studios has announced that their turn-based strategy game, | Read more »
HowToFormat Review
HowToFormat Review By Jennifer Allen on February 25th, 2015 Our Rating: :: USEFUL TIPSiPhone App - Designed for the iPhone, compatible with the iPad Making a presentation and want to get it just right? HowToFormat teaches you how through some bullet point style tips and tricks.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.