Server market is reanimated with year-on-year boost

International Data Corporation (IDC) claims worldwide factory revenue for the server market went up by 15.3 percent in the fourth quarter, hitting $15 billion.

Around 2.1 million servers were shipped, an increase of 6.1 percent year over year. In total, server makers had revenue of $48.1 billion in 2010 while shipping 7.6 million servers, 15.3 percent more than in 2009.

Demand for midrange servers, or servers worth $25.000 to $250.000, declined by 2.1 percent, however the high-end segment was up by 29.1 percent. IDC claims this was the strongest growth it had ever told the interested public, thanks to new products introduced in 2010 which titillised demand.

IBM was still leader of the pack in the fourth quarter and held a share of 37.4 percent, based on revenue. Big Blue was jolly happy as revenue soared by 21.9 percent compared to the fourth quarter of 2009. Its z/OS mainframes witnessed growth of 69.1 percent, accounting for 11.3 percent of IBM’s server business.

Hewlett Packard had to make do with second place, experiencing the lesser delights of a 29.9 percent slice of the whole cake.

Dell got a far smaller piece of the revenue pie with only 12.6 percent. Sun saw its share dwindle by 14.4 percent, falling by a lackluster 5.9 percent. Fujitsu also fell flat on its nose and bled a lot, coming in fifth with a mere 3.6 percent, 9.4 percent less than one year earlier.

IDC Worldwide Server Systems Factory Revenue, Full Year 2010 small.jpg

Shipments of Linux servers totalled 450.000 units, growing 9.8 percent. Revenue from Windows servers jumped 16.8 percent year over year, thanks to the latest incarceration, sorry, incarnation of the world’s favourite OS.

The bigger and smaller top five sold Windows servers worth $6.3 billion, accounting for 42.1 percent of global factory revenues. Blade servers contributed 19.2 percent to factory revenues in the fourth quarter and grew 24.7 percent to $6.6 billion in 2010.

Last week, IDC competitor Gartner declared its findings on the same subject. Gartner told interested parties revenue in the fourth quarter grew 16.4 percent, 0.9 percent more than what IDC is telling us. Gartner also reckons shipments were up by 6.5 percent, whereas IDC says 6.1 percent.

In contrast to IDC, Gartner sees HP as head of the gang on basis of revenues for the full year 2010. HP is said to have a share of 31.4 percent, IBM 30.8 percent and Dell 14.7 percent. IDC in contrast claims IBM had 31.9 percent of the market, HP 31.8 percent and Dell 14.6 percent.