IBM and HP-like every other major OEM-saw their server revenue and shipment numbers fall sharply in the second quarter, according to analyst firm Gartner. The historically bad quarter was driven by the freeze in IT budgets as businesses battled the global recession. Still, Gartner analysts are predicting some growth in the market for 2010.
The worldwide server market continued to decline in the second quarter as
the IT industry struggled with the effects of the global recession, according
research firm Gartner.
The quarterly report by the Gartner analysts issued Sept. 2 echoed what
their counterparts at IDC found
in a similar study
published earlier in the day: that businesses kept a
tight hold on their IT budgets, opting to extend the lives of their aging
servers rather than refresh them with new systems.
Overall, global server shipments fell 28 percent over the same period last
year, while revenue dropped 29.4 percent, according to Gartner's numbers.
"The server market remains constrained on a worldwide level," Gartner
analyst Jeffrey Hewitt said in a statement. "Server sales have felt the impact
of reduced budgets since the last half of 2008 and the second quarter of this
year remained in the negative."
No server segment or global region was spared, Hewitt said. Taking the
lightest hit was x86 blade servers, which saw unit shipments fall 23.6 percent
and revenues drop 13.6 percent.
Within this harsh environment, IBM and
Hewlett-Packard continued to lead the pack, though they, too, saw their
shipment and revenue numbers plummet.
IBM was still the top revenue generator,
pulling in more than $3.1 billion in the quarter for a 32.5 percent share.
Still, that was a 27.1 percent drop in revenue over the same quarter in 2008.
HP, Dell, Sun Microsystems and Fujitsu/Fujitsu Siemens rounded out the top
In units shipped, HP was the No. 1 vendor, selling 522,447 servers for a 31
percent market share. However, that was a 26.1 percent drop over the same
period last year.
Dell was the second top server shipment vendor, followed by IBM,
Sun and Fujitsu.
In a video, Gartner analyst Errol Rasit said that although the second
quarter was the worst the firm had recorded for servers in terms of revenue and
shipments, the market began to take on normal seasonal trends, which bodes well
for the rest of the year and into 2010.
However, it will take time for companies to begin thawing out their IT
budgets, and that's combined with an expected shift in how businesses view
their IT infrastructure, particularly servers, Rasit said. They want it to be
more cost-effective and easier to manage, and they're turning their attention
more to technologies such as server virtualization. Gartner is predicting 2
percent growth in server shipments for 2010, he said.
Still, there is some interesting developments in the server space, Rasit
said, in particular Cisco Systems' entrance with its UCS
(Unified Computing System)
offering and Oracle's impending
of Sun for $7.4 billion.
"So, two very large organizations entering into what is a fairly
consolidated market looks to be some exciting developments," he said.