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August 30, 2011

Worldwide Server Market Revenues Increase 17.9% ,IBM,HP Leads

Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, Second Quarter of 2011 (Revenues are in Millions)
2Q11 Revenue
2Q11 Market Share
2Q10 Revenue
2Q10 Market Share
2Q11/2Q10 Revenue Growth
1. IBM
1. HP
3. Dell
4. Oracle
4. Fujitsu
All Vendors
·         Source: IDC Worldwide Quarterly Server Tracker, August 2011

According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market increased 17.9% year over year to $13.2 billion in the second quarter of 2011 (2Q11). This is the sixth consecutive quarter of year-over-year revenue growth, as server market demand continued to improve around the world. Server unit shipments increased 8.5% year over year in 2Q11 to 2.1 million units, which is the second highest quarterly total ever reported in the second calendar quarter of any year.

According to market research firm IDC, IBM led the worldwide server market in Q2 2011 with a 30.5% market share, topping Hewlett-Packard which fell to the second position after its market share dropped to 29.8%, down 1.7 percentage points from Q1 2011. Other big players in the server market – Dell, Oracle and Fujitsu that were placed third, fourth and fifth, respectively.  While the fall in H-P’s server share is modest, it serves a reminder of the volatility of the hardware business.

IBM and HP jointly held the number 1 position in the worldwide server market with 30.5% and 29.8% factory revenue share respectively for 2Q11, a statistical tie. IBM experienced 24.5% year-over-year growth in factory revenue gaining 1.6 points of share in the quarter on the performance of System x, Power Systems, and System z. HP's factory revenue grew 9.3% year over year in 2Q11 based on solid demand for x86-based ProLiant servers and blades. Dell maintained third place with 13.8% factory revenue market share in 2Q11.
Top 5 Server Market Findings
  • The market for non-x86 servers, including servers based on RISC, EPIC (Itanium-based), and CISC processors, increased 23.3% year over year to $4.8 billion in 2Q11. This is the third consecutive quarter in which non-x86 servers have exhibited positive growth and the second consecutive quarter that non-x86 based system revenue has grown faster than the market overall. Growth in non-x86 server revenue was driven by improved demand for Unix servers and IBM System z platforms.
  • Unix servers experienced a second consecutive quarter showing year-on-year factory revenue improvement, growing 1.5% when compared to 2Q10. Unix server revenues were $2.9 billion, representing 22.0% of quarterly server revenue in the quarter. IBM's Unix server revenue increased 14.0% year over year in the quarter, as IBM gained 6.0 points of Unix server market share.
  • IBM's System z servers experienced the fourth consecutive quarter of positive revenue growth, with 61.1% year-over-year growth in 2Q11 to $1.2 billion, representing 9.0% of quarterly server revenue worldwide. This was the fourth consecutive quarter that IBM System z revenue exceeded $1 billion, driven by new product introductions and demand for capacity within the IBM installed base.
  • Linux server demand increased for the seventh consecutive quarter in 2Q11, with revenue growing 47.5% to $2.7 billion when compared with the second quarter of 2010. Linux servers represent 20.5% of all server revenue in the quarter as Linux server demand was helped significantly by Fujitsu's large scale K-computer HPC system in Japan.
  • Microsoft Windows server demand also continued to show strong growth as Windows-based hardware revenue increased 12.4% year-over-year. Quarterly revenue of $5.9 billion for Windows servers represented 45.5% of overall quarterly factory revenue and 71.0% of all quarterly server shipments