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Mar 05

IBM Leads Global Server Market in Q4 2011

Posted by jimfinnan97 in Untagged 

IBM continues to dominate in the hardware, software, and services  markets they compete in as evidenced by  the release of a new report from Gartner. The global growth of cloud computing and the slowing PC market have forced companies like IBM to focus on growth markets and IBM has been quick to shift courses in recent years.

According to the  report IBM leads the Global server market in Q4 of 2011.
IBM was proud to pick up on the Gartner report and confirmed the No. 1 position as the leading server vendor in the fourth quarter of 2011. They recorded 33.7% of the total server revenue in this market.

On an annual basis for 2011 IBM recorded 30.5% of the revenue share, 1.5% more than rival HP. 

The Gartner report also noted that IBM retained the #1 position in the Unix server market winning 52.8% of market share in the fourth quarter. IBM grew quarterly revenue by 17% year-over-year with IBM Power Systems taking the top position. 

For the full year of 2011, IBM led the Unix server market, with an impressive 45.9% market share coming from a gain of 6.9% over 2010. IBM grew Unix revenue by 23% over 2010, according to Gartner.

According to Gartner the battle for the server market will continue between IBM and HP.
"The outlook for 2011 suggests that growth will continue, but at lower levels, because the highest level of the replacement cycle for x86 servers was probably reached in 2010. These increases continue to be buffered by the use of x86 server virtualization to consolidate physical machines as they are replaced.

HP and IBM are tussling for outright market leadership as both vendors achieved revenues of over $15 billion for 2010, both with a market share of 31 percent. HP achieved a stronger year on year growth rate of 18.9 percent to IBM’s 9.2 percent. HP has demonstrated strength with the results of its x86 ProLiant line all year, although IBM’s System Z line was key in its improved results in the fourth quarter. 2011 will be a critical year in determining which of the relative strengths of these two leading vendors are best aligned to the market direction."

Additionally, IBM led the market for servers grater than $250,000, grabbing a  69.4% revenue share in the fourth quarter with IBM System z mainframes and Power Systems. IBM also led this market for the full year of 2011, with 8 percent revenue growth over 2010, capturing 63.7 percent market share, according to the Gartner report.
Overall, the worldwide server market ended 2011 with mixed results, as worldwide server revenue declined 5.4% in the fourth quarter of 2011 and server shipments increased 4.5%, according to Gartner.

For the year, worldwide server revenue grew 7.9%, and server shipments increased 7%, with IBM taking the revenue crown and HP leading in shipments.

"The shortage of hard-disk drive inventory because of the Thailand floods in October 2011 provided supply issues, and many providers could not meet the demand in the last weeks of 2011," said Jeffrey Hewitt of Gartner." We expect the negative impact of these drive supply issues to continue into 1Q12."
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