Server revenues drop in mixed bag for global market

The server market saw a drop in factory revenues, with all but Dell seeing significant drops year on year. The market had a mixed bag in IDC’s latest results, with factory revenues dropping off while shipments and server revenues increased.

Global server shipments increased by two percent to 2.2 million units in the fourth quarter on a year by year basis. Figures for the whole of 2011 showed that server revenues increase 5.8 percent to $52.3 billion compared to 2010, with global shipments up 4.2 percent to 8.3 percent.

Figures for the final quarter showed that factory revenues decreased by 7.2 percent year over year to $14.2 billion at the end of 2011.

All three classes of servers saw a drop in revenues, with volume systems dropping two percent to $8.8 billion, midrange decreasing 4.6 percent to $1.8 billion, and high-end server systems dropping a massive 18.4 percent to $3.7 billion when compared to the fourth quarter of 2010.

According to the report, this is the first time that all three have seen year on year revenue declines since the third quarter of 2009.

IBM held on to the top spot in the market with a 36.5 percent share in factory revenue in the fourth quarter, though it saw a decline of 7.6 percent year on year.  HP stayed in second place with a 26.4 percent of revenue, though it saw double digit drop from the previous year, seeing revenues fall 16.2 percent.

At Dell, all remained unchanged, despite being the only top five server manufacturer to see revenues grow – by 9.7 percent thanks to demand from SMBs and enterprises.

Double digit decreases were also seen by fourth placed Oracle, dropping 11.5 percent to claim a 5.2 percent market share, and Fujitsu, falling 10.5 percent to hold on to 3.4 percent revenue share.

Demand for Linux servers improved with more cloud systems demand, with hardware revenue heading to 2.2 percent year on year, reaching $2.6 billion and increasing market share.

Windows server demand went down in the fourth quarter, with hardware revenues lowering 1.5 percent to $6.5 billion.  Unix servers however saw a decline of 10.7 percent to $3.4 billion.