Q4 2010 Global Server Shipments Rise 6 Percent, Revenue Climbs 16 Percent
Researcher Gartner pegs full year 2010 worldwide shipments up 17 percent to 8.8 million units, revenue climbs 13 percent to $48.8 billion.
Worldwide server shipments inched up 6.5 percent to 2.4 million units and revenue rose 16.4 percent to $14.7 billion for Q4 2010, driven largely by demand for x86-based servers, according to researcher Gartner Inc.
Jeffrey Hewitt, Gartner research vice president, attributed the strong 2010 performance to business purchases to replace aging servers prodded by the introduction of new processor technology.
"2010 was a year that saw pent-up x86-based server demand produce some significant growth on a worldwide level," said Hewitt.
"The introduction of new processors from Intel and AMD toward the end of 2009 helped fuel a pretty significant replacement cycle of servers that had been maintained in place during the economic downturn in 2009," he said.
Gartner said that x86 servers purchased to replace older units likely peaked in 2010, prompting its forecast of a slower, albeit steady, sales pace in 2011, mitigated somewhat by the trend toward server virtualization and the resulting consolidation of physical machines.
HP Q4 shipment leader, IBM tops for revenue
Hewlett-Packard Co. held its worldwide server shipment leadership position during Q4 2010 with some 767,026 units shipped during the period, amounting to 6.9 percent growth over the same period last year and a 32.2 percent share of the market, according to Gartners data.
Dell Inc. held the second spot with about 515,000 units shipped during the quarter, an increase of 6.3 percent for a 21.6 percent share of the segment. IBM Corp. shipped about 332,250 units in the period for a bump of 3.8 percent from the similar quarter last year and a 14 percent share of the market.
Gartner said that for all vendors demand for x86 servers fueled the quarters performance, improving 7.1 percent in shipments and 20 percent in revenue when compared to the same period last year.
In terms of server revenue for Q4 2010, IBM led the segment with $5.2 billion, a 26.4 percent jump over the same period last year for 35.5 percent of the worldwide market. Gartner said that IBMs performance was backed by demand for its System z and System x products.
The introduction of new mainframe platforms from IBM helped to drive increases in the mainframe segment with 68.3 percent revenue growth of IBM's System Z platforms in the fourth quarter," Hewitt said.
HP followed closely with $4.5 billion in revenue for 30.4 percent share of the segment, a 31.3 percent increase over the similar quarter last year.
For the quarter, among the top five global vendors, IBM, HP and Dell recorded double-digit growth in revenue, while Oracle Corp. and Fujitsu posted sales downturns for the period.
Replacement servers, cloud, emerging markets drive 2010 worldwide growth
HP shipped about 2.8 million servers worldwide during 2010, posting a 17 percent increase over last years totals for a 31.7 percent share of the market, according to Gartners figures.
Dell held the second spot with 2.1 million units shipped globally, a growth rate of 21.3 percent from 2009, for 23.4 percent of the market. IBM posted 1.2 million servers shipped for a 12.8 percent bump over last year and 13 percent of the segment. Fujitsu held the fourth position at 3.3 percent share.
With the exception of Oracle, whose server unit shipments fell by nearly 32 percent compared to last year, each of the top five vendors advanced in 2010, Gartner said.
In terms of revenue, HP and IBM posted neck-and-neck results, with HP nudging slightly ahead at $15.3 billion in revenue worldwide for the year, an 18.9 percent jump over last year, for a 31.4 percent stake in the market.
IBM followed closely with $15 billion in sales worldwide, a 9.2 percent increase over last year, and 30.1 percent of the segment. Dell held the third spot with $7.2 billion in revenue, a 31.3 percent jump over last year, and 14.7 percent share of the market.
EMEA records modest Q4 2010 growth
Server shipments in Europe, the Middle East and Africa (EMEA) exceed 706,000 units in Q4 2010, an increase of 4.4 percent over the same period last year, and revenue totaled $4.3 billion, a 10.4 percent jump from the similar quarter last year, Gartner said.
The fourth quarter rounded off an encouraging year for the server market in EMEA with each quarter seeing positive year to year growth rates for both shipments and revenues, said Adrian OConnell, Gartner research director.
EMEA was particularly badly hit by the downturn in 2009 and, although economic concerns continue across much of the region, the server market has shown good momentum during 2010, he said.
We also need to recognize that the market is still in a fairly tentative recovery mode, OConnell said. Many companies are still in cost-containment mode and, although 2010 growth levels were strong, were still some way off the revenue highs that we saw in 2007, he said.
HP held the top position during the quarter with shipments growing at 8 percent year-over-year, followed by Dell at 5.4 percent growth. Fujitsu had the strongest growth in the region at 20.5 percent, Gartner said.