HP Leads Worldwide Server Market Revenue, IDC Says

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Server unit shipments are up 2.1 percent year-over-year in Q1 214 to 2.1 million units, according to the IDC Worldwide Quarterly Server Tracker report released on Wednesday. This increase is despite growing consolidation that has offset investments in hyperscale data center capacity.

According to the report, factory revenue in the worldwide server market dropped 2.2 percent to $10.9 billion, making Q1 2014 the fifth consecutive quarter that the server market has experienced a year-over-year decline in worldwide revenue. In Q4 2013 in Europe, specifically, factory revenue reached $3.7 billion, down 5.2 percent over Q4 2012.

In terms of vendors, HP held the top spot in the worldwide server market with 26.5 percent factory revenue share for Q1 2014. Stable demand for x86-based ProLiant servers and weakness in Itanium-based Integrity server revenue accounted for HP’s 2 percent revenue decline.

IBM took a 19.1 percent share for the quarter as factory revenue decreased more than 25 percent year-over-year, with demand for x86 based System x servers and System z mainframes declining sharply. Dell rounded out the third spot with 18 percent factory revenue market share in Q1 2014.

“The server market continues to be heavily influenced by the emergence of the 3rd Platform as mobile, cloud, big data, and social enablement drive significant hyperscale server deployments globally,” Matt Eastwood, group vice president and general manager, Enterprise Platforms at IDC. “At the same time, traditional client-server workloads continue to drive investment in private cloud facilitation as traditional SMB and enterprise customers drive consolidation and automation deeper into their environments. The net effect is an increasing concentration of computing power into fewer and larger enterprise and service provider data centers around the world.”

Demand for x86 servers improved in the first quarter with revenues increasing 4.9 percent year-over-year in Q1 to $8.9 billion worldwide. HP led this market with 29.6 percent revenue share, and Dell had 22 percent revenue share.

Non-x86 servers, on the other hand, experienced a revenue decline of 25.2 percent year-over-year to $2 billion, representing 17.9 percent of quarterly server revenue. IBM leads non-86 server revenue with a 57.2 percent revenue share.

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