Asia Pacific server shipments grow in Q3

Asia Pacific server shipments grew 13.4 percent year on year in Q3 2010, while revenue expanded 25.7 percent year on year, according to a report by Gartner.

In its Data Report the company also found that there was active IT spending across various market segments, which led to vibrant server demand in most of Asia Pacific’s major countries. This included Korea, which was found to have grown by 21 percent in shipments and 24.3 percent in revenue, China, which grew 18 percent in shipments and 26.7 percent in revenue and Hong Kong, which was up 18.9 percent in shipments and 37.2 percent in revenue.

Singapore was the overall winner in shipments growing 41.4 percent and 27.7 percent in revenue.

And it was good news good news for Australia, which despite having a shipment growth of   2.9 percent year-on-year, had a strong vendor revenue of 37.3 percent. The company said this was due to a surge in mainframe investment.

Revenue from mainframe sales, which are dominated by IBM, was up 154.5 percent from Q3 2009 in the Asia Pacific region.

“Asia Pacific registered as the third strongest region in vendor revenue growth after Eastern Europe and Latin American in third quarter 2010. Investment in mainframes helped to drive robust revenue growth in Asia Pacific during the period along with continued strength in the x86 segment, which has consistently grown in double digits for four consecutive quarters,” said Erica Gadjuli, principal research analyst at Gartner.

Shipments of X86-based servers increased 13.7 percent year on year. However, this was outpaced by revenue, which grew at 30.6 percent. Increased adoption of blades and richer configurations of rack-based servers helped to push the average selling price up during the quarter, the company said.

And the vendor revenue derived from RISC/Itanium Unix servers also showed a slight improvement with 2.3 percent growth and unit shipments up 5.4 percent from the same quarter last year, in which both performed better than the worldwide decline trend of 9.5 percent and 10 percent, respectively.

Virtualisation projects in mature countries helped drive average selling prices up, however they slightly dampened server shipment demand,” said Ms. Gadjuli. “Meanwhile, awareness, acceptance and investment of virtualization in emerging countries continued to improve.”

Gartner said that the positive overall trend in the server market during third quarter of 2010 is reflected in the performance of the top five vendors, which all double digit growth year-on-year in both shipments and revenue.

IBM led the Asia Pacific server market based on revenue with 43.1 percent market share, an increase of three percent from 40.5 percent share in 3Q 2009, totaling US$928.4 million. All three server platforms from IBM (System x, Power System and System z) supported its overall year-on-year revenue growth of 33.8 percent.

HP continued to dominate the Asia Pacific server market based on unit shipments with 29.7 percent share, growing year-on-year at 11.7 percent in this quarter. Gartner said the growth was driven solely by its x86 based ProLiant server.

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Blade servers (x86 and non-x86) represented less than 10 percent of total server shipments and 10.5 percent of total revenue in Asia Pacific this quarter. However, HP’s year-on-year growth of 20 percent in shipments and 64.6 percent in revenue outpaced the other form factors, namely tower and rack servers, for the period. Gartner said this meant that HP continued to be a leader in both shipment and revenue terms.

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