Server revenue up 7.5% to $13.5 bn in Q3, HP leads

Server Vendor Shipments Estimates, 3Q15
Worldwide server shipments grew 9.2 percent in the third quarter of 2015, while vendor revenue increased 7.5 percent to $13.5 billion.

Asia Pacific achieved 23.8 percent growth in shipments and 25.4 percent in revenue growth.

Most of the regions showed growth in both shipments and vendor revenue. Eastern Europe posted 5.8 percent dip, Japan 11.7 percent drop and Latin America 24.2 percent decline.
Worldwide Server Vendor Revenue Estimates, 3Q15
Server leader HP posted over $3.7 billion in server vendor revenue for a market share of 27.3 percent for the third quarter of 2015. HP server shipments increased 7.7 percent. HP’s server shipment market share was 22.2 percent. according to Gartner.

Dell is in the second position with $2.4 billion third quarter revenue from servers. IBM achieved $1.3 billion from server business. Lenovo had $1.06 billion revenue from server portfolio.

All of the top five global vendors increased revenue, except IBM. IBM’s decline is due primarily to its sale of its x86 server business to Lenovo. Beyond that, IBM’s server revenue fell 3.1 percent for the RISC segment, but grew 15 percent for mainframes to post a 5.1 percent total growth in the third quarter for the server businesses that it retained.

IDC report on server market

Meanwhile, IDC said server market revenue rose 5.1 percent to $13.4 billion in the third quarter of 2015. Revenue grew in rack optimized, blade, and density-optimized servers, while towers declined. Server shipments grew 4.5 percent to 2.49 million units.

Volume system revenue increased 7 percent to $10.8 billion aided by a continued expansion of x86-based hyper-scale datacenters coupled with enterprise and SMB refresh of x86-based platforms.

High-end system demand increased 1.2 percent to $1.4 billion helped by IBM’s z13 refresh.

Demand for midrange systems contracted 5.8 percent to $1.2 billion, as the x86 refresh appears to have run its course in this segment.

Future of server market

IDC sees modest opportunities for short term market growth related to the upcoming Microsoft SQL Server 2005 end of support on April 16, 2016. IDC estimates approximately 800,000 servers globally still running SQL Server 2005. IDC says server market growth will be driven by software-defined, disaggregated systems and network edge-deployed Internet of Things (IoT) compute.

Baburajan K
[email protected]