HP regains top position in server market with 28.1% share in third quarter

Enterprise networking vendor HP has regained the number 1 position in the server market with 28.1 percent revenue share in the third quarter of 2013, said IDC.

HP posted 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 posted 19.4 percent decline in revenue and moved to the number 2 position in the global server market. IBM’s server market share is 23.4 percent.

IDC noted that soft demand for System x and Power Systems resulted in loss of 4.5 points of factory revenue share for IBM.

Dell, which is in the third position, has 16.2 percent factory revenue market share in Q3. Dell’s factory revenue decreased 6.0 percent compared to 3Q12 losing 0.4 points of factory revenue share.

Hp server

Cisco and Oracle ended the quarter in a statistical tie for the number 4 market position with 5.0 percent and 4.1 percent factory revenue share respectively.

IDC says server market decreased 3.7 percent to $12.1 billion in the third quarter of 2013.

Volume systems experienced 3.5 percent revenue growth.

Demand for midrange and high-end systems experienced revenue declines of 17.8 percent and 22.5 percent respectively.

The midrange and high-end segments were impacted by continued weakness in Unix demand while volume demand was helped by solid x86 server demand.

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.

Matt Eastwood, group vice president and general manager, Enterprise Platforms at IDC, said that 2nd Platform workloads continue 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 data centers, which are opening up new market opportunity for both ODMs and Chinese OEMs, he added.

Overall Server Market Standings, by Vendor

Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, Second Quarter of 2013

(Revenues are in Millions)

Vendor   3Q13 Revenue   3Q13 Market Share   3Q12 Revenue   3Q12 Market Share   3Q13/3Q12 Revenue Growth
1. HP$3,39028.1 %$3,33926.6 %1.5 %
2. IBM$2,82223.4 %$3,50227.9 %-19.4 %
3. Dell$1,96116.2 %$2,08616.6 %-6.0 %
4. Cisco$5995.0 %$4193.3 %42.8 %
4. Oracle$4944.1 %$5884.7 %-16.0 %
ODM Direct$7836.5 %$5404.3 %45.2 %
Others$2,03516.8 %$2,07516.5 %-1.9 %
All Vendors$12,085100 %$12,559100 %-3.7 %

Source: IDC Worldwide Quarterly Server Tracker, December 2013.

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