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Server market grew 8.9 percent last year

Posted on Friday, February 23 2007 @ 21:33:50 CET by


Worldwide server shipments in 2006 totaled 8.2 million units in 2006, an 8.9 percent increase from 2005, while worldwide server revenue in 2006 reached $52.7 billion up 2.0 percent from 2005, according to Gartner, Inc.

"The fourth quarter of the year exhibited slower growth in x86 servers than we have seen in most recent years which constrained the results for the year as a whole,” said Jeffrey Hewitt, research vice president at Gartner. “Most of that slowdown seems to be attributable to a lengthening of the sales cycle due to the anticipated introduction of quad-core x86 processors with some lesser impact from x86 server virtualization.”

“RISC-Itanium Unix servers were weak for the year on a global basis falling 1.6 percent in shipments and 0.8 percent in revenue,” Mr. Hewitt said. “Mainframes had the strongest revenue growth of any segment for the year pushing ahead 3.9 percent over 2005.”

IBM continued to lead the worldwide server market based on revenue in 2006. The company ended the year with an increase in revenue (1.7 percent for 2006). Gartner analysts attribute the company’s performance to 10.3 percent growth in System z/zSeries and 7.0 percent growth in System x/xSeries while System p/pSeries and System i/iSeries revenue both dropped for the year (1.2 and 14.1 percent respectively).

Of the top five global vendors, only Sun gained revenue share for the year. By pushing its share ahead 1.2 percent to reach 10.8 percent, Sun reversed a yearly revenue share decline trend that had been occurring since 2001.

In server shipments, Hewlett-Packard remained the worldwide leader for 2006 (see Table 2). Its shipment growth was 8.0 percent. The ProLiant brand grew 8.5 percent in shipments for the year while HP Integrity climbed 30.1 percent. All other HP brands declined for the year which combined with the growth of ProLiant and Integrity produced the final 2006 result.

Of the top 10 vendors in server shipments worldwide, Rackable Systems had the highest growth with a 68 percent increase for the year. The only other vendor in the top 10 to increase its shipment share was NEC (0.2 percent).

Blade servers continue to be a high-growth segment with a revenue increase of 36.5 percent and a shipment increase of 33.0 percent for the year. IBM remained in the lead with blades, but HP pulled closer, as it narrowed the revenue share gap by 2.8 percent. IBM ended the year with a 41.1 percent revenue share of blades while HP finished the year with a 32.5 percent share. These two vendors continued to dominate this form factor and totaled almost 74 percent of the worldwide blade revenue share for 2006.

Server Vendor Revenue Estimates (in U.S. $)

Company

2006

Revenue

2006 Market Share (%)

2005

Revenue

2005 Market Share (%)

2006-2005 Growth (%)

IBM

16,895,062,702

32.1

16,613,992,968

32.2

1.7

Hewlett-Packard

14,240,676,553

27.0

14,569,269,106

28.2

-2.3

Sun Microsystems

5,708,595,035

10.8

4,947,896,726

9.6

15.4

Dell Inc.

5,431,169,668

10.3

5,409,183,590

10.5

0.4

Fujitsu/Fujitsu Siemens

2,508,982,735

4.8

2,698,072,898

5.2

-7.0

Other Vendors

7,890,634,701

15.0

7,395,562,184

14.3

6.7

Total

52,675,121,394

100.0

51,633,977,472

100.0

2.0



Server Vendor Shipments Estimates (units)

Company

2006

Shipments

2006 Market Share (%)

2005

Shipments

2005 Market Share (%)

2006-2005 Growth (%)

Hewlett-Packard

2,261,074

27.5

2,093,412

27.7

8.0

Dell Inc.

1,783,445

21.7

1,701,932

22.5

4.8

IBM

1,293,825

15.7

1,200,143

15.9

7.8

Sun Microsystems

368,603

4.5

342,457

4.5

7.6

Fujitsu/Fujitsu Siemens

256,794

3.1

262,898

3.5

-2.3

Other Vendors

2,270,036

27.6

1,959,258

25.9

15.9

Total

8,233,777

100.0

7,560,100

100.0

8.9




 



 

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