Server shipments: Asia and North America only regions on the rise

Servers shipments and sales decline in most parts of the world while HP named top worldwide vendor for third quarter.

In the third quarter of this year, the server market grew by one percent year-on-year in shipments while revenues grew by 1.7 percent, according to analyst Gartner.

But while the bottom line is simple enough, looking at the overall market by geographical region is more complex – in fact these latest statistics show the world splitting into two distinct strands.

On the upside, you have Asia and North America seeing growth in both server shipments and revenue in the third quarter. Meanwhile, the rest of the world - Europe, Japan, Latin America, and the Middle East and Africa - saw mixed or declining figures for both of these areas.

 

Gartner's worldwide server vendor revenue estimates, market share and growth 3Q14 (in US dollars)

Company

3Q14

Revenue

3Q14 (%)

3Q13

Revenue

3Q13  (%)

3Q14-3Q13 (%)

HP

3,374,559,864

26.9

3,404,811,159

27.6

-0.9

IBM

2,322,409,499

18.5

2,821,114,540

22.8

-17.7

Dell

2,219,989,943

17.7

2,025,411,030

16.4

9.6

Cisco

783,760,000

6.2

599,300,000

4.9

30.8

Oracle

500,400,000

4.0

500,438,000

4.1

0.0

Other Vendors

3,355,453,880

26.7

2,999,925,379

24.3

11.9

Total

12,556,573,186

100.0

12,351,100,107

100.0

1.7

 

 

The Asia/Pacific region posted the highest growth in shipments at 8.7 percent while revenues in the region increased by 7.5 percent. North America also saw growth, posting a more modest 0.7 percent uptick in shipments and a slightly better 2.6 percent growth in revenue.

While Asia/Pac and North America were on the rise, Western Europe saw mixed results: a 2 percent decline in shipments and a rise of 3.8 percent in revenue.

The rest of the world, however, declined for both server shipments and revenues. Eastern Europe fell 10.8 percent in shipments and 6.3 per cent in revenue; the Middle East and Africa dropped 5.2 percent in shipments and 6.7 per cent in revenue; Japan declined 6.7 per cent in shipments and 10.6 per cent in revenue; and Latin America saw a drop-off in shipments of 6.3 per cent and of 4.1 per cent in vendor revenue for the quarter.

"Only North America and Asia Pacific exhibited shipments growth, largely driven by demand from hyperscale organisations located there," said Gartner research director Errol Rasit. "These results support the continued bifurcation of enterprise and consumer services server demand."

 

Worldwide: Server vendor shipments estimates, market share and growth 3Q14 (Units)

Company

3Q14

Shipments

3Q14  (%)

3Q13

Shipments

3Q13  (%)

3Q14-3Q13  (%)

HP

569,426

22.5

669,103

26.7

-14.9

Dell

490,752

19.4

484,607

19.3

1.3

IBM

171,419

6.8

201,777

8.1

-15.0

Huawei

93,421

3.7

69,573

2.8

34.3

Inspur Electronics

91,244

3.6

50,153

2.0

81.9

Other Vendors

1,114,616

44.0

1,031,098

41.1

8.1

Total

2,530,878

100.0

2,506,311

100.0

1.0

 

Despite a decline of 0.9 per cent, HP was the worldwide server market leader based on revenue in the third quarter, according to Gartner. HP posted nearly $3.4bn in server revenue to account for 26.9 per cent of worldwide server sales. Cisco experienced the highest growth of any vendor in the third quarter, with 30.8 per cent.

 

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