Hewlett-Packard and IBM are still the top two vendors in Gartner's quarterly server survey, but the report also showed that the U.S. recession and slowing global economy have taken a bite out of worldwide server sales and shipments. In the fourth quarter, IBM, HP, Sun Microsystems and Dell all watched their revenue and server shipment numbers drop as enterprises stopped spending money on IT hardware.
remain the world's two top server vendors, but the slowing global economy
has taken a toll on both their revenues and unit shipment numbers, according to
new Gartner research.
In the fourth quarter of 2008, worldwide server
revenue decreased 15 percent for a total of $13.1 billion. Meanwhile, system
shipments fell more than 11 percent for a total of 2.1 million units. For the
year, server revenue dropped 4 percent compared to 2007, while shipments
increased only 2.6 percent.
The March 3 Gartner report was just one
of several recent surveys that showed how both businesses and consumers are
pulling back on their purchases of servers, PCs
and other hardware as the
United States continues to slide into a recession and the global economy slows down.
released its own report in February
that painted a similar picture of the
"The weakening economic environment had a deep
impact on server market revenues in the fourth quarter as companies put a hold
on spending across most market segments," Heeral Kota, a Gartner analyst, wrote
in the research firm's report.
In terms of revenue, IBM bested all other vendors
and pulled in $4.4 billion during the fourth quarter of 2008. However, those
numbers were a 17 percent decrease from the fourth quarter of 2007, when IBM's
server revenues topped $5.3 billion. In the fourth quarter of 2008, IBM's
System z mainframe systems helped boost the company's revenue.
After IBM, HP pulled in $3.9 billion worth of server
revenue, a decrease of 10 percent from 2007. HP's line of x86-based ProLiant
servers helped the company along.
revenues dropped 11 percent year-over-year
for a total of $1.4 billion,
while Sun's fell 15 percent to $1.3 billion. Fujitsu/Fujitsu Siemens rounded
out the top five with $560 million in server revenue, a year-over-year decrease
of 25 percent.
did top all other server vendors
when it came to unit shipments. In the
fourth quarter, HP shipped more than 690,000 units, but that constituted a 1.6
percent decrease from the fourth quarter of 2007.
Dell watched its server shipments fall 7 percent for
a total of 464,000 units, while IBM's unit shipments tumbled 22 percent for a
total 289,000 units.
Meanwhile, Sun's shipments fell 4 percent for a
total of 81,000. Fujitsu watched its shipments fall 14 percent year-over-year
for a total of 65,000 server units.
Demand for specific types of servers also declined
in the fourth quarter. Shipments of volume, x86-based servers dropped 11
percent, while Unix-based system shipments dropped 10.5 percent.
Blade server shipments and revenue were the only
bright spots in the Gartner report. Blade shipments increased 30 percent in
2008, while revenue from blade servers also increased 30 percent