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Server Sales Up

HP retained pride of place with 32.1% of the revenues, up 1.9%

Worldwide server sales were up 14.2% in Q3 and vendor revenue spiked 15.3% to $10.66 billion, according to Gartner, which credited data center and cloud buildouts.

HP retained pride of place with 32.1% of the revenues, up 1.9%. All of the top five global vendors except Oracle had year-on-year revenue increases. IBM was number two (30.2%, off 1.5%), Dell third (14.6%, up 1.2%), and Fujitsu fourth (4.7%, down a half a point). Oracle lost 1.2% of revenue share, a lot when you're only left with 6.2%.

Gartner said Dell grew its shipments 22.6% and was the only top five vendor to grow above the average. It benefited in part from a weak compare and an increased focus on its enterprise business, which the researcher says "is starting to pay dividends."

x86 servers were the market's main growth engine, up 14.9% in units and 29.5% in revenues. Gartner attributed the tickled ASPs to the more robust configurations used for virtualization.

Interestingly, while blade servers continued to grow, Gartner found they were outpaced by rack-optimized servers (with significant contributions from cheaper-to-run "skinless" servers). Blade servers were up 7% in shipments and 26% in vendor revenue while rack-optimized servers increased a pretty 23.7% in shipments and even prettier 31.2% in revenue.

Mainframe revenue, now that IBM has a new generation, was up roughly 9.9% while RISC/Itanium Unix servers slumped. Overall their revenues declined 21.7%. HP moved to the No. 1 position, and despite a decline of 18.5% increased its share to 36.9%. IBM moved to No. 2 though it experienced the sharpest decline of 28.3%. Gartner figures its poor performance was exacerbated by its transition to the new POWER7-based systems. Oracle slipped to third place with a decline of 18%. Bull and Fujitsu retained their respective fourth and fifth places.

All regions showed growth in Q3 except EMEA, which was down 2.9% on the revenue side although shipments were up 4.2%. Latin America grew the most in shipments up 28.3%. Eastern Europe scored the highest vendor revenue increase, up 33.3%. The US was up 17% in shipments, 16.3% in vendor revenue on large-scale data center purchases. Western Europe grew 8.8% in shipments and 5.7% in vendor revenue.

Gartner said "The EMEA server market's recovery continues but growth rate levels remain lower than in 2008. While the recovery is encouraging, ongoing economic uncertainty in many European countries continues to inhibit higher levels of demand and spending."

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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