IDC: HP regains lead from IBM in Q3 server revenue

Amid a 3.7 percent drop in worldwide revenue for the quarter largely from weaker Unix server demand, HP overtook IBM in terms of market share on improved sales for x86-based ProLiant servers, according to IDC.

 Worldwide server revenues saw a dip of 3.7 percent in the third quarter from the previous year to US$12.1 billion, the third consecutive on-year quarterly drop, according to IDC.

Worldwide revenue for the quarter dropped 3.7 percent.

Server market demand remained soft ahead of a forthcoming refresh cycle, which is expected to emerge in early 2014, IDC said in its Worldwide Quarterly Server Tracker on Wednesday. After increasing modestly in Q2 2013, server unit shipments were flat year-on-year in Q3 with 2.3 million units shipped worldwide, it added.

"Worldwide server revenue declined in all major geographic regions including Americas, EMEA, and Asia-Pacific in the third quarter. The market was impacted by a steady transition from 2nd Platform to 3rd Platform workload demand coupled with particularly weak sales of Unix servers, which served to further dampen the market," said Matt Eastwood, general manager for enterprise platforms at IDC.

Eastwood noted 2nd Platform workloads continued to represent a healthy consolidation opportunity across the market, driving solid demand for integrated systems. "At the same time, 3rd Platform applications are shifting more and more server demand into cloud service provider datacenters, which is opening up new market opportunity for both ODMs and Chinese OEMs," he added.

HP regains top spot from IBM

In terms of vendor ranking by revenue, HP took back the number 1 position in the worldwide server market with 28.1 percent factory revenue share in Q3 2013. HP posted a 1.5 percent year-over-year increase in factory revenue and gained 1.5 points of revenue share on improved demand for x86-based ProLiant servers in the quarter.

IBM held the number 2 position in the market with 23.4 percent factory revenue share following a drop of 19.4 percent on--year, resulting in a loss of 4.5 points market share on soft demand for System x and Power Systems, according to IDC.

Dell maintained third place with 16.2 percent factory revenue market share. Its factory revenue decreased 6 percent from last year, losing 0.4 points in market share. 

IDC servers
HP regains lead from IBM for Q3 server revenue. (credit: IDC)

Earlier this week, Gartner also released its Q3 overview of the server market. In line with IDC's view, it saw worldwide server shipments drop 2.1 percent to US$12.3 billion,despite higher shipments of 1.9 percent.