Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Processors/DSPs
?
?
Processors/DSPs??

Persistently weak server market drags revenues 6.2% in Q2

Posted: 29 Aug 2013 ?? ?Print Version ?Bookmark and Share

Keywords:server market? blade server? data centre? x86?

According to International Data Corp. (IDC), factory revenue in the global server market dropped by 6.2 per cent YoY to $11.9 billion in 2Q13. This was the second consecutive quarter of YoY revenue decline, as server market demand continued to soften in most geographic regions. Server unit shipments decreased 1.2 per cent YoY in 2Q13 to two million units, the third consecutive quarter where YoY server shipments have declined, noted the market research company.

On a YoY basis, volume systems experienced a 2.4 per cent revenue decline. At the same time, demand for midrange and high-end systems experienced YoY revenue declines of 22.3 per cent and 9.5 per cent respectively in 2Q13.

"Mainstream SMB and enterprise server customers around the world continue to focus on consolidation, virtualisation and migration initiatives aimed at increasing efficiency and lowering data centre infrastructure costs. At the same time, challenging economic conditions are dampening demand for new IT projects necessary to grow the server market globally," said Matt Eastwood, group VP and GM, enterprise platforms at IDC. "It is clear that the competitive dynamics in the server market remain fierce as the leading server vendors work to offset weak demand for generally higher margin Unix and blade servers with lower margin rack and density optimised servers."

Demand for x86 servers weakened in 2Q13, with revenues declining 1.3 per cent in the quarter to $8.7 billion worldwide as unit shipments were relatively flat (0.1 per cent) at 1.9 million servers. This was the second consecutive quarter of YoY factory revenue decline for the x86 server segment. HP led the market with 31.3 per cent revenue share despite a 14.8 per cent revenue decline. HP lost five points of market share when compared to 2Q12. Dell retained second place, increasing x86 factory server revenue 10.3 per cent YoY and securing 25.7 per cent of revenue share while gaining 2.7 points of share when compared with 2Q12. IBM rounded out the top three positions, holding 12.8 per cent revenue share following a 10.8 per cent YoY revenue decline.

There are two types of modular form factors, each with a distinct use case. Blade servers, which are highly leveraged in enterprises' virtualized environments, declined 6.2 per cent YoY to $2 billion. Blades now account for 16.9 per cent of total server revenue. HP maintained the number one spot in the blade server market in 2Q13 with 44.8 per cent revenue share; Cisco and IBM held the second and third positions in the blade market with 19.6 per cent and 17.2 per cent revenue share, respectively.


1???2?Next Page?Last Page



Article Comments - Persistently weak server market drag...
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top