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  • Corliss Tech Review Group: Revenue down in Q2 2013 while Worldwide Server Shipments Up

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    IBM leads the worldwide server market in Q2 2013, claiming a 25.6 percent share with a revenue of $3.156 billion USD, Gartner reports. As per the same quarter in 2012, that number is actually down 9.7 percent from a 27.2 percent market share and revenue of $3.496 billion USD. Both HP and Oracle saw a decline year-over-year while Dell, Cisco, and another of others saw growth.

    Whereas the general server market revenue drops to 3.8% in the second quarter, worldwide server shipments actually elevated 4 percent year-over-year. Inspur Electronics saw the most shipments, up 211.8 percent with 20,960 shipments in 2012 and 65,350 shipments in 2013. Only with distant second, Cisco came next with a 58.5 percent increase year-over-year then followed by “others” (14.4 percent) and Dell (1.7 percent). IBM shipments fell 8 percent year-over-year and HP dropped 13.6 percent.

    Despite HP’s drop in server shipments, the company remained the worldwide market leader in Q2 2013 with a 23.9 percent market share and 586,857 shipments. Dell with a 22.4 market share came in at a close second followed by IBM (8.5 percent), Cisco (3.2), and Inspur Electronics (2.7 percent). According to Gartner reports that Inspurentered the top five thanks to a significant High-performance Computing (HPC) deal that it won in its native China during the quarter.

    “In terms of server form factors, x86 blade servers declined by 3 percent in shipments and 4.5 percent in revenue for the quarter,” the firm said. “The x86 rack-optimized form factor climbed 3.9 percent in shipments and 2.4 percent in revenue for the second quarter.“

    Server shipments decline 5.9 percent in Q2 2013 weigh against to Q2 2012, with server shipments reaching 550,537 units particularly in the European, Middle Eastern, and African regions (EMEA). HP led the server market in this region, shipping 222,016 units and owning 40.30 percent of the market. Dell followed with 114,057 shipments as well as IBM (47,550), Fujitsu (24,325) and Cisco (14,484).

    Regarding the revenue during the same quarter, HP is still leading the pack with $1.045 billion USD, then IBM with the raking in $834.8 million USD followed by Dell ($434.9 million), Oracle ($193.5 million), and Fujitsu ($175.8 million) — revenue for all others combined was $426.5 million USD. From the top five to show revenue growth, Dell and Fujitsu remained the only two vendors. The EMEA market lacks the hyper scale segment growth that other regions benefit from, Gartner said.

    “In the second quarter of 2013, x86 server revenue decreased 4.7 percent in EMEA, while RISC/Itanium UNIX revenue fell 22.6 percent,” the firm said. “Revenue for the ‘other’ CPU segment grew 44.3 percent. The RISC/Itanium UNIX segment continued to suffer from migrations to alternative platforms as users sought lower cost alternatives and more flexibility. The ‘other’ CPU category, which is primarily driven by mainframes, saw a double-digit increase thanks to platform refreshes. “

    Adrian O’Connell, research director at Gartner, said that weak enterprise demand, combined with consolidation and platform migration, continued to dampen theEMEA server market during Q2 2013. Recognized vendors like HP, Dell, and IBMwere also gradually more challenged. These challenges are relatively-new vendors such as Cisco and local OEMs like Huawei and the current worldwide PC market leader Lenovo. ODMs selling directly to large end-users also posed as a problem for the larger companies.

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