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Global server shipments grew 4% in Q3

by Scott Bicheno on 2 December 2008, 10:54

Tags: Gartner (NYSE:IT)

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Growth at a cost

The third quarter of 2008 yielded year-on-year growth of 4.4 percent in worldwide server shipments, up to 2.3 million units.

However, it apparently took some serious cost cutting to bring about even this modest growth as global server revenues totalled $12.7 billion, which was a decline of 5.4 percent compared to the same period last year.

"Server shipments grew in the third quarter, but the spectre of constrained economies and tightened credit was felt in the revenue area," said Jeffrey Hewitt, research VP at Gartner.

"What we've seen is larger system purchases in the Unix area put in check. At the same time x86 servers were able to maintain some shipment momentum, but lower overall average x86 server selling prices resulted in a drop in revenue in the quarter for this server type as well.

"Evidence of a challenged RISC-Itanium Unix server area appeared in a fall of 16.1 percent in shipments and 10.8 percent in revenue."

Here are a couple of tables from Gartner showing the breakdown by vendor of server revenues and shipments respectively.

Table 1
Worldwide: Server Vendor Revenue Estimates, 3Q08 (U.S. Dollars)

Company

3Q08

Revenue

3Q08 Market Share (%)

3Q07

Revenue

3Q07 Market Share (%)

3Q07-3Q08 Growth (%)

IBM

3,856,826,095

30.3

4,026,746,389

30.0

-4.2

Hewlett-Packard

3,793,197,226

29.8

3,946,402,502

29.4

-3.9

Dell Inc.

1,500,603,160

11.8

1,582,838,318

11.8

-5.2

Sun Microsystems

1,158,251,731

9.1

1,341,466,786

10.0

-13.7

Fujitsu/Fujitsu Siemens

616,753,331

4.8

665,460,127

5.0

-7.3

Other Vendors

1,791,514,236

14.1

1,878,940,160

14.0

-4.7

Total

12,717,145,779

100.0

13,441,854,282

100.0

-5.4

Source: Gartner (December 2008)

Table 2
Worldwide: Server Vendor Shipment Estimates, 3Q08 (Units)

Company

3Q08

Shipments

3Q08 Market Share (%)

3Q07

Shipments

3Q07 Market Share (%)

3Q07-3Q08 Growth (%)

Hewlett-Packard

724,024

31.2

649,958

29.3

11.4

Dell Inc.

500,470

21.6

484,650

21.8

3.3

IBM

308,524

13.3

319,674

14.4

-3.5

Sun Microsystems

81,522

3.5

79,237

3.6

2.9

Fujitsu/Fujitsu Siemens

73,578

3.2

76,506

3.4

-3.8

Other Vendors

629,863

27.2

610.704

27.5

3.1

Total

2,317,981

100.0

2,220,729

100.0

4.4

Source: Gartner (December 2008)

 



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