server sales

Research: Hardware Server Sales Slump as IT Pros Bet On Virtualization and Consolidation

September 1, 2009 by Robin Wauters Leave a Comment

TheInfoPro, an independent research company, today released new real-time data from its pending Server Study (final results due in October, Q3 2009) indicating that more than 50% of new servers being installed in 2009 will host virtualization, and future progressive growth indicates 80% by 2012.

Announced at VMworld 2009, TheInfoPro’s Server Study has conducted interviews with 195 IT pros wherein initial spending data indicates that 22% expect increases this year in server spending, but an additional 34% of the group indicates they’ll experience decreases. The IT pros range from Fortune 1000 (F1000) organizations to midsize enterprises (MSEs) in North America and Europe, and the interviews were completed between June and August 2009.

TheInfoPro Server Study also captures data about the rise of desktop virtualization, offers highlights on spending in each area of server management by vendor, and gives an in-depth look at VMware’s benefits and challenges in the current IT marketplace. For more information, visit TheInfoPro at booth #1322 or call the contact number below for a real-time briefing.

TheInfoPro’s network of IT pros stated that virtualization and consolidation is a critical lifeline to optimizing the current capacity of their existing physical servers. Virtualization deployments will continue to expand in the coming months, with 70% of the respondents citing it as critical to meeting their business objectives. Though hardware spending continues to show little growth, more than 50% of respondents do expect to resume hardware acquisition once the economy stabilizes. For now, Hewlett-Packard is positioned as a strong vendor in future choice of spending and faces the lowest vulnerability to customer switching when compared to competing vendors.

In software, despite the revenue-dampening effect of enterprise licensing, Microsoft remained steady in its category, with 22% of respondents indicating they would spend more throughout the remainder of 2009. VMware and Red Hat remain strong in their respective categories, with 41% and 30% spending more in 2009, respectively.

Gartner: Server Market Still Growing, Despite Virtualization

May 23, 2008 by Robin Wauters 1 Comment

Just recently, Gartner published a report showing that the server market did great during all of 2007, including the fourth quarter. Server shipments rose 11 % during the fourth quarter, while revenue rose almost 3 %.

The analyst firm has now proclaimed server sales and shipments also showed strong growth in the first quarter of this year compared to last year despite continued growth of the use of server virtualization technology. Jeffrey Hewitt, VP Research at Gartner said that certain factors are “masking” the impact of server virtualization.

“A lot of the growth in physical server sales is coming from an explosion in the use of certain applications such as Web servers, which often do not lend themselves to being virtualized. Also, server virtualization is still much more accepted in mature markets such as the US, Europe, and Australia, and less adopted in fast-growing markets such as China. Additionally, customers are not running server virtualization on old hardware. Customers are buying larger servers to host virtualization. This market is so hungry for more and more horsepower. Virtualization makes it easier to host more and faster applications.”

Gartner on Thursday said that a total of 2.3 million servers were sold in the first quarter, up about 7.6 percent over the 2.1 million shipped during the same quarter last year. Revenue growth was not as strong, however. Vendors sold $13.6 billion worth of servers during the quarter, up only 4.3 percent compared to the $13.0 billion in server sales last year, Gartner said.

HP was the world’s top server vendor during the first quarter of 2008, accounting for 30.1 percent of the total worldwide shipments. Fast growth in server shipments by Dell, which boasts a 22.7 percent market share, puts that company within striking range of the top position. Dell’s shipments grew 15.8 percent over last year compared to HP’s growth of 7.8 percent.

Worldwide RISC-based and Itanium- based server shipments slipped 8.4 percent compared to last year, with all top five vendors seeing a drop in sales. However, revenue for this class of servers grew 3.7 percent over last year, with all top five vendors seeing revenue growth except for Sun, which saw revenue drop as its Solaris Unix-based focus continues to shift more towards x86-based servers, Hewitt said.

Shipments of servers with the Linux OS grew the fastest year-over-year, up 13.9 percent compared to the 6.8 percent growth of shipments of servers with Windows, Hewitt said. However, the overall base of Linux-based servers is still only half that of Windows-based servers, so in terms of absolute numbers, Windows- based server shipments grew faster.

[Source: ChannelWeb]

Gartner: Server Market Doing Fine Until Further Notice

February 22, 2008 by Robin Wauters 1 Comment

A new report from Gartner shows the server market did great during all of 2007, including the fourth quarter. Server shipments rose 11 % during the fourth quarter, while revenue rose almost 3 %. The world’s server vendors combined to ship 2.4 million boxes during the fourth quarter and brought in $ 15.5 billion for their efforts. In all of 2007, shipments rose 7 %, while revenue jumped 4 %. For the entire year, vendors moved more than 8.8 million units and generated $ 54.8 billion in revenue, according to Gartner.

The rise of virtualization and the general economic slowdown, combined with trimmed budgets at the financial services companies, has left a lot of analysists proclaiming a big slowdown and even downfall in hardware sales. But so far, the sky seems blue.

Out of the top vendors, Hewlett-Packard enjoyed the strongest fourth quarter in terms of shipments. It grew 12 % year-over-year, while Dell grew at 9 %, IBM grew at 7 % and Sun declined by 6 %. Fujitsu-Siemens also enjoyed a super quarter with 18 % growth.

Vendor	Q4 Shipments	Gain/Loss
1) HP	702,100	12%
2) Dell	499,687	8.8%
3)IBM	372,701	7.4%
4)Sun	84,778	-6.3%
5)Fujitsu/Siemens	75,882	17.9%

Almost all of the vendors saw their revenue rise during the fourth quarter. IBM stood out as the lone laggard, despite it talking an awful lot lately about how strong its server business is.

Vendor	Revenue	Gain/Loss
1) IBM	$5.3bn	-0.8%
2)HP	$4.4bn	7.6%
3)Dell	$1.6bn	4.1%
4)Sun	$1.49bn	1.0%
5)Fujitsu/Siemens	$616k	2.1%

For the full year, HP stood out with 17 % growth in shipments, leading the herd. Sun was the biggest loser, dropping 8.3 %. In revenue, Dell was the main gainer, showing sales growth of 13.2 %. HP notched 9 % growth as well, while the rest of the vendors were in the low single digits.

Everyone moved a ton of x86 boxes and benefited from double-digit growth in terms of shipments. HP, Fujistu-Siemens and Sun had double-digit revenue growth as well, while Dell came in at 4 % and IBM hit 7 % growth.”Blade servers continue to be a high-growth segment with a revenue increase of 44.5 % and a shipment increase of 19.9 % for the year,” Gartner said. “HP was the 2007 leader with blades at a 41.7 % shipment share, with IBM being in second place at 30.9 %. These two vendors continued to dominate this form factor and totaled almost 78 % of the worldwide blade revenue share for 2007.”

[Source and tables: The Register]