HP gains top spot with 32.5% market share in factory revenue
Factory revenue in the worldwide server market increased 4.6% to $10.4bn in the first quarter of 2010, compared to $9.95bn in the same period last year, marking first year-over-year growth in seven quarter as the server market continued to improve around the world, according to market research firm IDC.
Server unit shipments increased 23.2% year over year in the first quarter of 2010, compared to modest 1.4% increase in shipments experienced in fourth quarter of 2009, representing the fastest year-over-year quarterly server shipment growth in more than five years, IDC said.
Volume systems revenue increased 31.9%, while midrange enterprise revenue declined 19% and high-end enterprise segment revenue down 28.9%, compared to the same period a year ago.
According to IDC, HP held the top spot in the worldwide server market with 32.5% market share in the factory revenue in the third quarter of 2009, led by strong demand for its x86 ProLiant servers during the quarter. Its revenue increased by 16.3% year over year.
IBM held the second place with 27.5% share as factory revenue declined 1.4% year-over-year. Dell gained the third spot with 16.3% market share with revenue increasing 51.9% year-over-year. Sun and Fujitsu held tied for the fourth positions. Sun’s revenue declined by 31.3%, while Fujitsu factory revenue rose by 1.9%.
Microsoft Windows server demand was positively impacted by the accelerating x86 server market, as hardware revenue increased 31.5% and unit shipments increased 22.1% year over year. Linux server revenue rose by 36.5% to $1.9bn in the quarter and Unix servers experienced 29% revenue decline, compared to first quarter of 2009.
The x86 server factory revenue increased 33.4% to $6.8bn as unit shipments increased 25.6% to 1.8 million servers. The blade market accelerated and continued its sharp growth in the quarter with factory revenue increasing 37.1% year over year, with shipments increasing by 20.8% compared to 1Q09.
Matt Eastwood, group vice president of enterprise platforms at IDC, said: The market recovery has been led by sharply higher demand for x86 servers around the world as SMB and enterprise customers aggressively refresh their infrastructures.
IDC expects the recovery to extend to Unix and mainframe platforms in the second half of 2010 as the technology refresh extends from volume- to value-oriented systems with somewhat longer planning horizons. It’s also important to note that we are in the middle of one of the sharpest periods of market inflection in a decade and we expect significant shifts in technology usage and market shares to occur as the recovery continues.