HP, Cisco Thrive in Slow-Growing Server Market: Gartner
HP and Cisco are the only top-five vendors to see revenues grow in the third quarter, according to Gartner's numbers.Hewlett-Packard continues to lead a relatively stagnant global server market, which saw shipments grow but revenues fall in the third quarter, according to Gartner analysts. HP and Cisco Systems were the only top-five vendors to see their revenues grow during the quarter, while HP and Huawei Technologies were the only ones to see the number of shipments increase, according to numbers released by Gartner Dec. 4. Overall, global server revenues reached more than $12.3 billion in the third quarter, a 2.1 percent decline from the same period in 2012. Total shipments hit more than 2.5 million units, a 1.9 percent jump over the third quarter last year. "The worldwide server market remains in a relatively weak performance mode as we move through the second half of the year," Jeffrey Hewitt, research vice president at Gartner, said in a statement. "x86 servers maintained low levels of growth at 2.1 percent in units year-on-year and 4.4 percent in revenue. RISC/Itanium Unix servers continued to decline at 4.5 percent and 31 percent in vendor revenue compared to the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed an increase of 7.8 percent."
Gartner's numbers came out a day after a study by TheInfoPro—a service of 451 Research—indicated that in 2013 and 2014, enterprise investment in servers, including x86 systems, would slow as businesses turn their attention to software. Many businesses had invested a lot of money in server refresh efforts over the past few years in an effort to leverage virtualization technology and lay the groundwork for cloud-ready, software-defined data centers.