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IDC: Dollarwise, Windows still leads the server market

By | March 2, 2011, 8:35am PST

The researchers at International Data Corp. (IDC) released their latest worldwide server market share data this week. As was true in the last quarter of 2009,  Windows servers are far and away the leader in share as measured by of percentage of revenue, the firm found.

While Windows’ share was up slightly, to 42.1 percent of server OS share by revenue, Linux was also up, reaching 17 percent in Q4 2010, according to IDC. Unix’s share was down, hitting 25.6 percent share, IDC said.

The fast-rising star in the server OS space was IBM’s z/OS mainframe operating system, IDC reported. A year ago, IDC didn’t break out z/OS’s share by revenue, but in the last quarter of 2010, that number was 11.3 percent.

Here are the IDC breakouts:

Server OS share (by percentage of revenue) for Q4 2010

z/OS 11.3
Linux 17.0
Windows 42.1
Unix 25.6

Server OS share (by percentage of revenue)for Q4 2009

z/OS (not available)
Linux 14.7
Windows 41.6
Unix 29.9

IDC noted that factory revenues for the fourth quarter of 2010 were up 15.3 percent year over year, to $15.0 billion. Shipments for Q4 2010 hit 2.1 million units. IDC said Q4 2010 marked the highest quarterly revenue in the server market in three years.

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Topics

Revenue, IBM z/OS, International Data Corp., Servers, Microsoft Windows, Operating Systems, Operational Accounting, Utility Computing, Hardware, Software, Finance, Mary Jo Foley

Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: IDC: Dollarwise, Windows still leads the server market
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0 Votes
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Is Linux still there?
jk_10 2nd Mar 2011
As I said before, while Linux people buzzing Linux share increase, they should realized: "Linux growth + Unix growth = negative". this is always true. Question is: when Unix is gone in the planet, where will Linux go?
0 Votes
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That is revenue percentage, and does not represent server OS market share.
DonnieBoy 2nd Mar 2011
There are more and more sites using Linux supported by their own internal groups and pay nothing. Just look at the number of servers at Google alone.
0 Votes
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Sure LSE just switched it on
LBiege 2nd Mar 2011
... and look what happened: Flat out crash from week one.
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That's not True Donnieboy. Companies that do serious business
Will Farrell 2nd Mar 2011
@DonnieBoy
which is any company will be paying for support, so those numbers are accurate. Maybe a garage based porn site will do it alone, but not the companies that matter.

Linux usage in the chart is accurate I have to tell you.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
WilErz Updated - 2nd Mar 2011
@DonnieBoy

The IDC figures refer to server revenue, not to OS revenue. If a firm plan to run Linux on a server, they've still got the buy the hardware, and they bloody well aren't going to buy it with Windows Server or Unix installed. They're going to buy it either with Linux installed or with nothing installed. (Note that the figures only add up to 96 per cent, leaving 4 per cent for servers shipped with other OSes or no OS).
0 Votes
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WilErz, are you sure about the numbers?
Richard Flude 2nd Mar 2011
"They're going to buy it either with Linux installed or with nothing installed. (Note that the figures only add up to 96 per cent, leaving 4 per cent for servers shipped with other OSes or no OS)."

Far greater the 4% of x86 / x64 servers ship with no OS. I don't believe your definition is correct.

The figures appear to count only those with an OS installed (4% being other).
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
WilErz Updated - 3rd Mar 2011
@ Richard Flude

According to Channel Register, IDC include servers shipped with no operating system. However, they have a method of guesstimating which operating systems are installed. The method isn't specified, but an obvious one would be to survey a random sample of customers provided by the vendors, asking which OSes they installed on their recently purchased servers.

So, I was wrong. The IDC figures do indeed include servers that ship without an OS, as I thought, but most of these servers aren't assigned to the 'other' category. Rather, they're assigned to categories according to an internal IDC estimation procedure.

The key points stand that: (a) the figures refer to server hardware revenue, (b) Linux requires hardware, (c) servers that ship with no OS installed are included in the figures. So, unless IDC are conspiring against Linux (I'm sure some zealots will claim this), there's no reason at all to believe that the IDC figures understate Linux's share of server shipment revenue (or unit shipments when unit figures are available, as in Mary Jo Foley's article last June, which I refer to below).
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
daikon 2nd Mar 2011
@jk_10
What does Linux have to do with Unix?
0 Votes
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Obivious...
jk_10 2nd Mar 2011
@daikon Linux is there only because of existence of Unix (don't think I have to explain). Imagine Unix is gone, zero, will Linux still have a share? where will it go? up? down?
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RE: IDC: Dollarwise, Windows still leads the server market
daikon 2nd Mar 2011
jk_10,
Linux will always have a share.
0 Votes
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jk_10: The market share of Workloads handled by Linux / Unix is going up.
DonnieBoy 2nd Mar 2011
It is just the revenue share that is going down, because of the ease of internal groups supporting supporting Linux without having to pay for the OS. This only shows how expensive Windows servers are.
0 Votes
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I can tell you where it went in our shop
terry flores 2nd Mar 2011
@jk_10

My major project last year was standing up a 1000-core HPC cluster running Linux, done 1.5 months ahead of schedule, total software cost $485 (some monitoring app that our architect was in love with). On the Windows side we decommissioned 8 Windows systems, or about 20 percent of our remaining M$ server boxes.
0 Votes
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She was careful to repeat "in terms of revenue"
TripleII-21189418044173169409978279405827 2nd Mar 2011
@jk_10
Since a paid for server is typically 1/3 the price of the Windows equivalent, and of course the massive base of "free" servers installed via local IT, in terms of marketshare, Windows server is not growing nearly as fast.

Your statement about Linux is eating Unix is very 2004ish. Linux was a natural replacement for Unix at their EOL, but with the ease of implementing Linux servers today, it is pretty easy to replace Windows now once the proprietary shackles are dealt with.

TripleII
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RE: IDC: Dollarwise, Windows still leads the server market
WilErz 2nd Mar 2011
@TripleII

In terms of volume, Windows Server has an even higher market share. Unix is typically used on very expensive hardware, and as users of this hardware migrate to Linux, this adds a lot to the Linux revenue share but very little to the Linux unit share.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
WilErz 2nd Mar 2011
@ Richard Flude

I refer you to Mary Jo Foley's article from last June, 'IDC: Windows Server still rules the server roost'. In it, she explains that the IDC percentages don't add up to 100 because IDC include an unspecified 'other' category. She also includes unit shipments (for 2009Q4 and 2010Q1), which show that Windows is even more dominant in unit terms than in revenue terms.
0 Votes
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Right. Figure doesn't include servers shipped with no OS
Richard Flude 3rd Mar 2011
There's a significant proportion of servers (much greater than 4%) where OS is installed onsite. Including windows volume license and site license customers.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
WilErz 3rd Mar 2011
@Richard Flude

According to whom?
0 Votes
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Revenue costs of a Free system
Tom6 29th Mar 2011
usage would be a more useful method of comparing a free system (linux) against one that charges (Windows). Obviously the one that always charges has higher revenue than one that doesn't.

A classic case of misinformation through useless stats.
Regards from Tom happy
0 Votes
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The article may be true, but ...
terry flores 2nd Mar 2011
The license "revenue" from our 28 Windows servers was more than the "revenue" from our 840 Linux servers, since the license cost for the 840 servers was zero. If the intent of the article was to point out the higher cost for Windows servers, I guess that's true.
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Yes, you hit the nail on the head. The percentage of workloads handled by
DonnieBoy 2nd Mar 2011
Windows is very low, but, for the small niches where Windows server is used, they are paying through the nose.
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RE: IDC: Dollarwise, Windows still leads the server market
condelirios 2nd Mar 2011
@DonnieBoy Niches? HUH? Windows dominates in the server market. It isn't even close. 40% market share in this space is huge. Competing with free OS Linux, and the Traditional Unix servers and winning is what Windows is doing. Niche = Linux in both servers and desktops.
0 Votes
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Think
Tim Patterson 2nd Mar 2011
@conde...

Use your brain. "as a percentage of revenue"

This does not tell us how many servers are in operation nor their OSs.

Many thousands of Linux installs were free. Have a few good Linux guys? No need to pay Redhat or Novell. Of course this won't count in IDC's silly little "percentage of revenue" survey.
0 Votes
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Still buying boatloads of Windows servers
honeymonster 2nd Mar 2011
@terry flores
Customers obviously find that Windows gives them value for money. Otherwise they would not buy Windows servers.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
itguy08 2nd Mar 2011
@honeymonster

1. They don't know better.
2. If you pull Windows servers out, watch your OS license go up. Or you will get a visit from the BSA goons...

MS has resorted to #2 quite a few times.
0 Votes
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I didn't say anything negative about Windows
terry flores 2nd Mar 2011
@honeymonster

As you point out, there are many customers who find Windows Servers suitable for their purposes and budgets. Microsoft is in no danger of going out of business. I just pointed out that you have to be careful when making comparisons between marketshare based on different metrics like units shipped or revenues.
0 Votes
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itguy08 likes spewing BS
Will Farrell 2nd Mar 2011
@itguy08
everything you say is one big lie, so just grow up or go home.
You are nothing but a boldface lier.
0 Votes
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MS can continue to compete against Linux
P. Douglas 2nd Mar 2011
@terry flores,

As long as MS continues to differentiate Windows server from Linux on core and expanded features, as well as on overall abilities, ease-of-use, and value, Windows server can continue to grow and compete against Linux. (It's not all about price, or else Apple would be a failure in the computer market today.) E.g. having software which allows you to use 3D visualization to zoom in and out, and see what's going on your whole network, would be fantastic!
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You need 840 Linux servers to do the work of 28 Windows servers?
Will Farrell Updated - 2nd Mar 2011
@terry flores

That's just insane.
0 Votes
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Is this an attempt at humor?
terry flores Updated - 3rd Mar 2011
@Will Farrell

If it was, I pity you. If it wasn't, I pity you even more.

The two projects are unrelated. We have been phasing out Windows as a server platform for the last two years after our licensing costs from Microsoft skyrocketed.
0 Votes
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Is the hardware free too?
WilErz 2nd Mar 2011
@terry flores

You'd have a point if the figures referred to OS licence revenue, rather than to server hardware revenue.
0 Votes
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Mean averages from IDC, Gartner, and Netcraft...
olePigeon 2nd Mar 2011
Mean averages from IDC, Gartner, and Netcraft put usage marketshare at approximately:

Windows: 41.59%
Linux: 41.02%
UNIX: 5.54%

So with Linux at roughly 41% of the usage share but only 17% of the revenue share, Windows looks to be very expensive (but not as expensive as UNIX.)
0 Votes
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These are also only a percentage of websites using a given OS. The biggest
DonnieBoy 2nd Mar 2011
sites use Linux / Unix almost exclusively. So, if there were a way to measure the percentage of workloads handled by Linux, it would be very high. It is mostly just small websites using Windows.
0 Votes
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The article omitted the obnoxious fee Linux
LBiege 2nd Mar 2011
... administrators charge you when deciphering those 500 command-line arguments that you don't run into in a Windows environment. The TCO of Linux is exorbitant.
0 Votes
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Not anymore.
TripleII-21189418044173169409978279405827 2nd Mar 2011
@LBiege
That was true 10 years ago, when Linux required a LOT of expertise and the talent pool was a lot smaller. Linux is common, mainstream, the talent pool is now about equal, the premiums are nowhere near what they used to be. Now, let's look at the undisputed difference in cost. Even assuming that it is a one for one servers maintained to IT person ratio, the premium is trivial compared to the license costs and CALs and cost of feature creep associated with Windows server.

It think that is actually why, as carefully stated, Windows leads in revenue marketshare.

TripleII
0 Votes
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Your numbers are abnormally high for the Linux number
Mister Spock 2nd Mar 2011
@olePigeon
It would appear that your math is in error, as Linux is much smaller then the number you have chosen.
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RE: IDC: Dollarwise, Windows still leads the server market
kirovs@... 4th Mar 2011
@Mister Spock
Says you and group of Soviet scientists.
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RE: IDC: Dollarwise, Windows still leads the server market
selliott80919 2nd Mar 2011
Mary,

The report references "factory revenue". I would assume that these figures are hardware percentage of revenue figures, not software license figures? The fact that Linux is "free" isn't relevant to the figures if that is the case.
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NO, it is the revenue from the OS itself. Windows actual percentage of the
DonnieBoy 2nd Mar 2011
server market is very low, it is just VERY expensive.
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RE: IDC: Dollarwise, Windows still leads the server market
noagenda 2nd Mar 2011
@DonnieBoy

Apparently in your zeal to discredit all things MS, you didn't get a chance to read the linked IDC report. It is not OS revenue but hardware by OS revenue.
"?IBM's System z servers running z/OS experienced the second consecutive quarter of positive revenue growth, with 69.1% year-over-year growth in 4Q10 to $1.7 billion. This is the fastest quarterly revenue growth IDC has ever reported for IBM mainframes, as systems running the z/OS operating platform accounted for 11.3% of all server revenue in 4Q10 and IBM System z was the only platform outside of Linux and Windows to experience positive revenue growth in the quarter.
?Linux server demand also improved in 4Q10 with revenue growing 29.3% to $2.5 billion when compared with the fourth quarter of 2009. Linux servers now represent 17.0% of all server revenue, up 1.8 points over 4Q09. Shipments of servers running Linux increased 9.8% year over year, totaling more than 450,000 units.
?Microsoft Windows server demand was positively impacted by the x86 server market refresh as hardware revenue increased 16.8% year over year. Quarterly revenue of $6.3 billion for Windows servers represented 42.1% of overall quarterly factory revenue. The 1.5 million server shipments are the highest quarterly total ever reported for Windows servers.
?UNIX server revenue was relatively flat with a 0.4% decrease when compared to 4Q09, as the demand for the platform stabilized in the quarter. Worldwide Unix revenues were $3.8 billion for the quarter, representing 25.6% of quarterly server spending. "
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RE: IDC: Dollarwise, Windows still leads the server market
Mythos7 2nd Mar 2011
@DonnieBoy

Another brilliant DonnieBoy statement. Windows Servers totally dominate the enterprise market.
0 Votes
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You keep telling yourself that, son
Will Farrell 2nd Mar 2011
@DonnieBoy
and maybe it will come true one day in the real world not the one you decided to make and live in.

The actual Windows usage percentage is FAR AHEAD of actual Linux usage, so just deal with it and grow up.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
1773 2nd Mar 2011
@DonnieBoy Are you a MS hater or Google/Linux fan ? How come I see you commenting only on Microsoft related posts ? What are your thoughts on spyware infested apps making it to the Android Market ?
0 Votes
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Donnieboy was MIA
Will Farrell 2nd Mar 2011
@1773
on the gmail lost data crash. Imagine that. He's looks like he MIA on all the stories about Google problems, issues, and failures.

I guess he ran out of excuses for Google and needs time to build up more, or is tired of being embarrased, or maybe both.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
kirovs@... 4th Mar 2011
@noagenda
Care to normalize by hardware price then? No? I thought so.
My guess is Unix share is dipping faster than explained, Windows has less and Linux more. Of course it is just a guess, but this is what this report is as well.
0 Votes
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The Linux appologists are out in force once again
Will Farrell 2nd Mar 2011
So, Windows has the lion share of the market, booth installed base and revenue but I have to laugh at the ABM's assertion that Linux is far ahead in actual usage because "its free so they can't count it."

Lol!!!
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
daikon 2nd Mar 2011
@Will Farrell
Where do you see any appologists? From what information did you come up with that actual Windows usage if far ahead of actual Linux usage?
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RE: IDC: Dollarwise, Windows still leads the server market
WilErz 2nd Mar 2011
@daikon

Mary Jo Foley reported IDC's unit figures for 2010Q1 and 2009Q4 last June, in an article titled "IDC: Windows Server still rules the server roost":

Q1 2010 units

Windows 1,379,487 (75.3%)
Unix 65,451 (3.6%)
Linux 380,429 (20.8%)


Q4 2009 units

Windows 1,434,225 (73.9%)
Unix 84,851 ( 4.4%)
Linux 412,041 (21.2%)

Q1 2010 dollars

Windows $5.1 billion (48.9%)
Unix $2.3 billion (22.2%)
Linux $1.7 billion (16.2%)

Q4 2009 dollars

Windows $5.4 billion (41.6%)
Unix $3.9 billion (29.9%)
Linux $1.9 billion (14.7%)

As you can see, Windows dominates in terms of server unit shipments.
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
daikon 2nd Mar 2011
@WilErz
So you are telling me that Will based his comment of actual Windows usage is ahead of actual Linux usage off this report.
0 Votes
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Hahaha...but...
james347 2nd Mar 2011
...not for long. Kiss your sugar daddy good bye!
0 Votes
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RE: IDC: Dollarwise, Windows still leads the server market
Mythos7 2nd Mar 2011
@james347

They have been saying that for a long time. Maybe it will come come true some year, decade or century.
0 Votes
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