The global economic situation continued to hamper the worldwide server market during the third quarter. According to IDC, worldwide server factory revenues declined 30% from $15.2 billion in 3Q00 to $10.7 billion in 3Q01. Even though the United States experienced the most downturn in the market, the slowdown continues to affect other areas of the world.
„The difficult economic conditions worldwide were clearly reflected in server sales this quarter,“ said Vernon Turner, IDC’s vice president of Global Enterprise Server Solutions. „We expect that price wars, especially in the entry server market will stimulate growth over the next two quarters.“
IDC rates the top five vendors in the worldwide market according to revenue share as follows:
1. IBM 26%
2. Compaq 16%
3. Hewlett-Packard 15%
4. Sun Microsystems 12%
5. Dell 8%
Standard Intel Architecture Servers (SIAS) grew 1% sequentially in unit shipments. Compaq continued to be the market leader worldwide with 26% of the market followed by Dell with 20% of the market. In the United States, Dell marginally edged out Compaq with 28.8% vs. 28.3% market share.
„We continue to see fierce competition for the number one spot in the U.S. SIAS market,“ said Mark Melenovsky, research manager of IDC’s Internet Infrastructure program. „In addition to the current price war, we expect a less gloomy near-term outlook for the SIAS market due to a shift in server spending to less expensive hardware, SMB growth, and large scale projects that have been delayed into the 2002 timeframe. These indicators should help spur unit shipments over the next few quarters.“
Unix Servers declined 11% sequentially in unit and lost 19% in revenue. Sun continued to be the market leader both worldwide and in the United States, with 28.8% and 36% market share, respectively, followed by HP with worldwide and U.S. market share of 28.5% and 27% market share, respectively.
Although high-end servers (greater than $1,000,000) declined over 27% year-over-year in factory revenue worldwide, evidence suggests that customers continued to consolidate major applications into data centers. „While IBM was able to post high-end year-over-year revenue growth of almost 21% for its zSeries (S/390), it was not enough to offset declines posted by other vendors in this market segment,“ said Steve Josselyn, Research Director, Global Enterprise Server Solutions.
IDC’s Worldwide Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture.