IBM had the lead for the third quarter of 2012 in the worldwide server market based on revenue with $3.5 billion in server vendor revenue for a total share of 27.6 percent. IBM's revenue was down 9.5 percent year-on-year. Most of IBM's revenue contribution came from its Power Systems brand with some contribution by System x as well, reveals a new Garter study.
Four of the top five global vendors had revenue decreases for the third quarter of 2012. Dell was the only vendor among the top five to have its revenue increase in the third quarter.
Worldwide: Server Vendor Revenue Estimates, 3Q12 (U.S. Dollars)
Company | 3Q12 Revenue | 3Q12 Market Share (%) | 3Q11 Revenue | 3Q11 Market Share (%) | 3Q12-3Q11 Growth (%) |
IBM | 3,479,454,267 | 27.6 | 3,846,807,802 | 29.6 | -9.5 |
HP | 3,330,804,391 | 26.4 | 3,802,440,046 | 29.3 | -12.4 |
Dell | 2,099,469,317 | 16.7 | 1,903,221,687 | 14.7 | 10.3 |
Oracle | 592,040,000 | 4.7 | 763,610,285 | 5.9 | -22.5 |
Fujitsu | 494,121,545 | 3.9 | 605,009,267 | 4.7 | -18.3 |
Other Vendors | 2,610,962,610 | 20.7 | 2,053,375,210 | 15.8 | 27.2 |
Total | 12,606,852,131 | 100.0 | 12,974,464,297 | 100.0 | -2.8 |
Source: Gartner (November 2012)
HP remained the worldwide leader in server shipments in the third quarter of 2012 in spite of an 8.4 percent decrease in shipments for the quarter. This decline was driven primarily by declining revenue in HP's ProLiant and Integrity brands. HP's worldwide server shipment share was 25.8 percent. Of the top 5 vendors in server shipments worldwide, Dell and Cisco were the only vendors to experience an increase in shipments.
Worldwide server shipments grew 3.6 percent year-on-year in the third quarter of 2012, while revenue decreased 2.8 from the third quarter of 2011. "The third quarter of 2012 again produced shipment growth on a worldwide level, but server revenue was weak due to ongoing economic weakness and market segment differences," said Jeffrey Hewitt, research vice president at Gartner.
From the regional standpoint, North America grew the most in shipments with a 7.4 percent increase. The region also posted the highest vendor revenue growth at 1.1 percent for the period.
"x86 server shipments grew 4.3 percent in the third quarter of 2012, and revenue increased 4 percent from the third quarter of 2011. RISC/Itanium Unix servers continued to fall globally for the period - a 31.1 percent decline in shipments and a decrease of 16.4 percent in revenue compared to the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed a decline of 17 percent in terms of revenue," Hewitt said.
