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By Mel Duvall
Worldwide revenues for servers sank by 25% in the first quarter of 2009, according to a report by researcher IDC, the third consecutive quarter of year-over-year revenue declines.
The news does not bode well for server manufacturers like Hewlett-Packard, IBM and Dell, and marks the lowest quarterly server revenue since IDC began tracking the market on a quarterly basis 12 years ago.
"Market conditions worsened in all geographic regions during the first quarter as customers of all types pulled back on both new strategic IT projects and ongoing infrastructure refresh initiatives," said Matt Eastwood, group vice president for enterprise platforms for Framingham, Mass.—based IDC.
"Most enterprise organizations are deferring new IT procurements and instead focusing on extending server lifecycles and improving existing asset utilization."
Server unit shipments fell 26.5% year-over-year in the first quarter of 2009, accelerating from the 12% decline experienced in the fourth quarter of 2008.
Volume systems experienced the sharpest decline, with year-over-year revenues slipping 30.5%. Midrange enterprise demand weakened, with a decline of 13.6%, and in the high-end enterprise segment, revenue declined 19.5%.
On a vendor basis, HP and IBM shared the No. 1 position in worldwide market share in the first quarter, each with 29.3%. IBM gained 1.7 points in the quarter while HP lost 0.7 points. For IBM, growth was driven by a solid performance in its System Z and System P server lines.
Dell and Sun finished the quarter almost in a tie for the No. 3 position, with Dell capturing 11% of the market and Sun 10.3%. More troubling for Dell, however, its server revenues declined 31.2% year-over-year, the biggest drop among the top five server manufacturers.
Fujitsu/Fujitsu-Siemens remained in fifth spot with 6.7% of the market. Its revenues declined 18.8% year-over-year.
Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, First Quarter of 2009
Revenues are in Millions |
| Vendor |
1Q09 Revenue |
1Q09 Market Share |
1Q08 Revenue |
1Q08 Market Share |
1Q09/1Q08 Revenue Growth |
| 1. Hewlett-Packard |
$2,913 |
29.3% |
$3,946 |
30% |
-26.2% |
| 1. IBM |
$2,904 |
29.3% |
$3,624 |
27.6% |
-19.9% |
| 3. Dell |
$1,093 |
11.0% |
$1,590 |
12.1% |
-31.2% |
| 3. Sun Microsystems |
$1,018 |
10.3% |
$1,367 |
10.3% |
-25.5% |
| 5. Fujitsu/Fujitsu Siemens |
$667 |
6.7% |
$821 |
6.2% |
-18.8% |
| Others |
$1,329 |
13.4% |
$1,799 |
13.7% |
-26.1% |
| All Vendors |
$9,924 |
100% |
$13,147 |
100% |
-24.5% |
| IDC |
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