Gartner: Server sales fell 3.8% Y/Y in Q2


The decline is a little better than Q1's 5% drop, but still points to a bleak demand environment, as enterprise attempts to improve server efficiency (via consolidation and virtualization) and a mix shift towards cheaper, white-label servers preferred by Internet/cloud companies hurt sales. (PR)

IDC is even more pessimistic, estimating revenue fell 6.2% and units 1.2% (lower ASPs). (PR)

x86 servers (largely INTC-based) continue gaining share: Gartner thinks sales rose 2.1% Y/Y and units 4.5%. The opposite holds for Unix servers: sales -25.3% and units 27.4%. "Other" server sales (inc. IBM mainframes) rose 6.9%.

IBM and H-P (HPQ), whose enterprise hardware units have fallen on hard times, remain the industry's top vendors, but continue to bleed share. IBM's share fell 160 bps Y/Y to 25.6%, and H-P's 420 bps to 25%.

DELL and Cisco (CSCO), as demonstrated by recent earnings numbers (I, II), remain share gainers. Dell +210 bps to 17.7%, Cisco +150 bps to 4.4%. Oracle (ORCL), which is seeing rising (Intel-based) engineered system sales and plunging Unix/SPARC CPU server sales, is assigned a 5.8% share (-20 bps).

"Other" vendors, including white-label firms, had a 21.5% share (+230 bps). IDC estimates sales of density-optimized servers (beloved by Internet companies) rose 26.6% to $735M, and now make up 6.2% of server revenue.

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Comments (2)
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    Good news for intel it seems that doesnt come often...
    28 Aug 2013, 02:55 PM Reply Like
  • samuraitrader
    , contributor
    Comments (883) | Send Message
     
    low margin, commodity hardware.
    28 Aug 2013, 05:58 PM Reply Like
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