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The worldwide server market continued to decline in the second quarter of 2009 research firm IDC reported Tuesday. It was the fourth consecutive quarter of revenue declines and the lowest quarterly server revenue total since IDC began tracking the server market on a quarterly basis.
There was no news to be had from the latest quarterly survey, unless you were IBM or Dell. Both companies managed to claw market share away from rivals in the quarter while Sun Microsystems saw its market share fall by 1.1%. HP more-or-less stayed flat.
IDC reported server revenue fell 30.1% from $14 billion in the second quarter of 2008 to $9.8 billion in the second quarter of 2009. Server unit shipments declined 30.4%, accelerating from the 26.5% decline experienced in the first quarter of 2009. That also represented the largest year-over-year quarterly unit decline as customers continued to defer shipments.
“Over the past four quarters the worldwide server market has experienced significant revenue deceleration in all geographic regions as the economic recession has deepened,” Matt Eastwood, IDC enterprise platform vice president said in a statement. “Fewer servers have been shipped over the last four quarters than at any time since 2005 and it is clear that the worldwide server installed base is aging rapidly.”
The nugget to be gained from that statement is that in the months ahead companies will need to begin thinking seriously about updating their aging server base, which could create a foundation for strong growth. However, IDC wasn’t yet predicting when that growth would kick in.
As manufacturers battled for a piece of a much smaller pie, IBM appeared to be the biggest winner. It held onto its No. 1 spot in the market with a 34.5% share of factory revenue, a 1.8% gain from the year ago quarter. HP remained in the No. 2 spot with 28.5% market share, basically unchanged from a year ago. Dell solidified its spot in third over Sun, grabbing 12.4% of the market, a .5% increase over the year ago quarter.
IDC also reported that revenues for all classes of servers weakened further in the second quarter. Volume systems were down 30% year-over-year, midrange systems were off 28.1%, and the high-end enterprise segment fell 32%. This was the third consecutive quarter that all three server segments declined on a year-over-year basis.
Here’s how the vendors faired in the second quarter of 2009, by revenue and market share:
1. IBM - $3.4 billion, 34.5%
2. HP - $2.8 billion, 28.5%
3. Dell - $1.2 billion, 12.4%
4. Sun - $981 million, 10%
5. Fujitsu/Fujitsu Siemens - $345 million, 3.5%
6. Others - $1.1 billion, 11%
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