Dell, Cisco Winners In Otherwise Dreary 3Q Server Market4:58 PM EST Fri. Nov. 30, 2012
|Total WW server market, 3Q 2012. Click for full-sized view.|
Server revenue fell in the third quarter of 2012, with only Dell and Cisco among the top vendors showing any growth at all, according to a couple of analyst reports released this week.
IDC, Framingham, Mass., said in its latest Worldwide Quarterly Server Tracker that worldwide revenue for vendors of all servers fell 4 percent over the third quarter of 2011 to $12.2 billion, marking the fourth consecutive quarter for falling server revenue. That was despite a slight 0.6 percent uptick in server unit shipments over last year to 2.1 million units.
Meanwhile, Stamford, Conn.-based Gartner reported third-quarter 2012 worldwide server revenue fell 2.8 percent over last year to reach $12.6 billion despite a 3.6 percent growth in the total numbers of servers shipped, which reached 2.5 million units.
Both analyst firms agreed that, of the top server vendors, Dell was by far the biggest winner of the third quarter.
In terms of total server revenue, IBM remained No. 1, followed by Hewlett-Packard, Dell, Oracle and Fujitsu in both analyst firms' lists. However, Dell was the only one to show growth. Dell's third-quarter revenue rose 8.2 percent over last year according to IDC and 9 percent according to Gartner.
Gartner's report, by separating the x86-based server market from the market as a whole, called out a big gain for Cisco. Cisco, the newcomer to the server market with its UCS line, saw a 40.4 percent rise in total server shipments in the third quarter, giving it a server revenue growth of 56.5 percent.
The only other winner according to both IDC and Gartner was the "other" server vendors outside the top five. IDC estimated those vendors saw third-quarter revenue increase by 20.7 percent, while Gartner estimated those vendors' revenue grew 27.7 percent.
In the x86-based server market, Gartner estimated that HP remained the top vendor despite an 8 percent drop in shipments over last year to about 629,000 and a 9.3-percent drop in revenue to $2.8 billion.
NEXT: More Details On The x86, Linux, Unix Server Sales
Dell kept its No. 2 position thanks to its 9 percent rise in shipments to about 564,000 units, which gave the vendor a 10.3 percent revenue increase to $2.1 billion.
IBM remained the third-largest x86-based server vendor with a slight 1.4 percent drop in shipments to about 265,000 units, causing a 5 percent drop in revenue to $1.4 billion, Gartner said.
Fujitsu saw its x86 server shipments fall about 3.8 percent to about 56,000 units, but actually enjoyed a 3.6 percent rise in revenue to $364 million.
Cisco, the No. 5 server vendor in unit shipments, was actually No. 4 in revenue in the x86 market, Gartner sale. Cisco sold 56,000 servers in the third quarter, up 40.4 percent, which gave it a 56.5 percent jump in revenue to $420 million.
The partial settlement in the dispute between HP and Oracle over Oracle's decision to stop developing software for HP's Itanium-based Unix servers brought little if any joy to the Unix server market, which fell in the third quarter by 31.1 percent in terms of units shipped and by 16.4 percent in terms of revenue.
Of the top three Unix server vendors, IBM saw shipments fall 15.5 percent while revenue fell 2 percent, Oracle saw shipments fall 45.3 percent while revenue fell 35.5 percent and HP saw shipments fall 38.1 percent while revenue fell 28.2 percent, Gartner said.
Thanks to high-performance computing and cloud infrastructure demand, sales of Linux servers rose 6.6 percent over those of last year to reach $2.6 billion, or about 21.5 percent of all server vendor revenue, IDC estimated.
Blade server shipments fell in the quarter over last year by 1.1 percent, but revenue rose 2.9 percent, IDC said. About 91 percent of blade server revenue comes from x86-based models, and blade servers account for 21.5 percent of all x86-based server revenue.
IDC estimated that HP continued to be the leading blade server vendor in the third quarter with a market revenue share of 45.9 percent, followed by IBM at 19 percent, Cisco at 15 percent and Dell at 8.1 percent.
PUBLISHED NOV. 30, 2012