As the market recovery continued to extend from x86 servers to midrange Unix to high-end mainframe class systems
Factory revenue in the worldwide server market increased 17.9% year over year to $13.2bn in the second quarter of 2011, according to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker.
Shipments of server units increased 8.5% year over year in 2Q11 to 2.1 million units, second highest quarterly total ever reported in the second calendar quarter of any year.
Volume systems experienced a 16.6% year-over-year revenue increase, the seventh consecutive quarter of positive growth for the segment.
Midrange enterprise demand improved for the fourth time in the past five quarters, with a 16.7% year-over-year revenue increase.
The improving market conditions extended to the high-end enterprise segment, as quarterly revenue increased 22.8% when compared to 2Q10.
IBM and HP jointly held the number 1 position in the worldwide server market with 30.5% and 29.8% factory revenue share respectively for 2Q11, a statistical tie.
Dell maintained third place with 13.8% factory revenue market share in 2Q11.
Oracle and Fujitsu jointly held the number 4 position with 7.2% and 6.5% factory revenue share, respectively, in 2Q11.
As a direct result of the large scale K-computer HPC system in Japan, Fujitsu experienced a sizable 133.6% year-over-year improvement in server revenue.
The blade market continued its solid growth in the quarter with factory revenue increasing 26.9% year over year and shipment growth increasing by 6.2% compared to 2Q10.
Overall, bladed servers, including x86, EPIC, and RISC blades, accounted for $2bn in revenues, representing 15.2% of quarterly server market revenue.
Demand for x86 servers continued to improve in 2Q11, with revenues growing 15.1% in the quarter to $8.4bn worldwide as unit shipments increased 5.4% to 1.9 million servers.
HP led the market with 38.1% revenue share based on 14.4% growth over 2Q10. Dell retained second place, securing 21.7% revenue share, while IBM now holds 16.1% revenue share.
IDC Enterprise Platforms group vice president Matt Eastwood said server market growth accelerated in 2Q11 and experienced its highest reported second quarter revenue in three years with all geographies contributing to the positive year-over-year growth.
"This was the fifth consecutive quarter with double-digit year-over-year revenue growth as the market recovery continued to extend from x86 servers to midrange Unix to high-end mainframe class systems," Eastwood said.
"While 2Q11 was an exceptionally strong quarter, attention has already turned to the market outlook for the second half of the year. IDC believes that weakening macroeconomic conditions around the world will serve to moderate demand for new servers later this year."
The market for non-x86 servers, including servers based on RISC, EPIC (Itanium-based), and CISC processors, improved 23.3% year over year to $4.8bn in 2Q11, driven by increased demand for Unix servers and IBM System z platforms.
IDC Enterprise Servers research vice president Jean Bozman said the Unix server marketplace is seeing some rebound in revenue, based on technology refresh for Unix server products from all major vendors.
"This segment was hard-hit in 2009 and 2010 during the economic downturn as customers deferred or delayed acquisition of midrange and high-end Unix servers," Bozman said.
"Now, many mission-critical workloads need more room for workload consolidation, and user demand for long-deployed applications and databases is growing."