Worldwide server shipments dropped 28% on-year in the second quarter of 2009, while revenues fell 29.4pp on-year, according to Gartner.
"The server market remains constrained on a worldwide level," said Jeffrey Hewitt, research vice president at Gartner. "Server sales have felt the impact of reduced budgets since the last half of 2008 and the second quarter of 2009 remained negative."
"No server segment was immune from the economic woes. x86-based servers fell 27.4% in units and 25.7% in revenues. RISC/Itanium Unix servers were also impacted in quarterly results with drops of 40.6% in units and 31.4% in vendor revenues," Hewitt said.
The server market was negatively impacted in all geographic regions. Europe, Middle East, and Africa (EMEA) fell the most significantly with a 31.9% decline in shipments and 35.8% in vendor revenues. The effects from the dollar exchange rate to local currencies had an additional negative influence. Asia Pacific felt the least downward pressure on units with a 17.2% unit decline, and it also had the least vendor revenue impact for the period with a 15% decrease.
IBM continued to lead the worldwide server market based on revenues. The company posted just over US$3 billion in server revenues for a total share of 32.5% worldwide for the second quarter of 2009. This share was up 1pp from the same period in 2008. IBM sustained a 27.1% revenue decline, with all of its server brands posting on-year decreases, Gartner said.
All of the top-five global vendors – Dell, Fujitsu, Hewlett-Packard (HP), IBM, and Sun – had double-digit declines in revenues for the second quarter of 2009.
In server shipments, HP remained the worldwide leader for the second quarter of 2009 despite a shipment decline of 26.1% on year. All of HP's server brands saw on-year declines for the period.
Of the top-ten vendors in server shipments worldwide, seven posted double-digit decreases in units for the second quarter.
The least impacted server segment was x86 blade servers, which fell 23.6% in units and 13.6% in revenues for the second quarter.
EMEA market
In Europe, the Middle East and Africa (EMEA), server shipments totaled just over 490,000 units in the second quarter of 2009, a decline of 32% from the same period last year. Server revenues totaled US$3 billion in the second quarter of 2009, a decline of 36% over the same quarter last year.
"In the second quarter of 2009, the server market continued the dramatic declines of the first quarter, as economic weakness continued to negatively affect levels of expenditure," said Errol Rasit, senior research analyst at Gartner. "The second quarter offered no respite to the dire results seen in the first quarter, and showed slightly weaker on-year declines, as server spending in all segments remained constrained. The priority for server vendors for the second half of 2009 is to adjust their plans in line with modest improvements in server spending as the economy starts to recover."
In the x86 market, total volumes in EMEA declined 31% compared to the second quarter of 2008. Of the top-five vendors, HP was the number one exhibiting a decline of 31%. The number two and number three vendors, IBM and Dell, showed the largest declines of the top-five at 35%.
RISC and Itanium UNIX server revenues declined 38% in the second quarter of 2009. Of the top-five vendors in this segment, Sun regained the number one position despite a decline of 40%. Its fiscal year end-provided a slight market share advantage relative to its competitors' more typical seasonal performances. IBM in the number two position was the least impacted vendor in the segment, but still exhibited a decline of 22%. HP in the number three position posted a 45% decline, while Dell, which had performed relatively well in the first quarter, succumbed to the general market forces in the second quarter and declined 46%. Fujitsu in the number five position exhibited the largest decline at 73% due to weakness in demand in key countries such as Germany and a greater focus on its x86 product portfolio, Gartner detailed.
In EMEA server shipments, HP maintained its number one position, marginally increasing its share by 0.1pp compared to the second quarter of 2008. Even though it saw a decline of 31.7%, HP outpaced its nearest rivals Dell and IBM as a result of its product breadth, market coverage, and strong sales execution.
"As economic conditions start to stabilize, the outlook for the third quarter of 2009 is for slightly improved results compared with those seen in the first half of 2009. Even with this relative improvement, we expect server spending behavior to remain cautious through the second half of 2009, with the market not returning to growth until 2010," concluded Rasit.
| Gartner: Worldwide server vendor revenue estimates, 2Q09 (US$) | |||||
| Company | 2Q09 revenues | Market share | 2Q08 revenues | Market Share | Y/Y |
| IBM | 3,146,461,260 | 32.5% | 4,318,956,465 | 31.5% | (27.1%) |
| HP | 2,797,312,338 | 28.9% | 4,003,027,837 | 29.2% | (30.1%) |
| Dell | 1,293,178,966 | 13.3% | 1,623,285,218 | 11.8% | (20.3%) |
| Sun | 1,041,672,106 | 10.8% | 1,633,955,195 | 11.9% | (36.2%) |
| Fujitsu | 321,752,146 | 3.3% | 492,821,856 | 3.6% | (34.7%) |
| Others | 1,089,310,265 | 11.2% | 1,656,883,335 | 12.1% | (34.3%) |
| Total | 9,689,687,081 | 100% | 13,728,929,906 | 100% | (29.4%) |
Source: Gartner, compiled by Digitimes, September 2009
| Gartner: Worldwide server vendor shipment estimates, 2Q09 (units) | |||||
| Company | 2Q09 shipments | Market share | 2Q08 shipments | Market Share | Y/Y |
| HP | 522,447 | 31% | 706,724 | 30.2% | (26.1%) |
| Dell | 402,187 | 23.9% | 577,163 | 24.7% | (30.3%) |
| IBM | 226,570 | 13.4% | 308,835 | 13.2% | (26.6%) |
| Sun | 63,412 | 3.8% | 96,510 | 4.1% | (34.3%) |
| Fujitsu | 48,819 | 2.9% | 61,077 | 2.6% | (20.1%) |
| Others | 422,371 | 25.1% | 590,468 | 25.2% | (28.5%) |
| Total | 1,685,806 | 100% | 2,340,777 | 100% | (28.0%) |
Source: Gartner, compiled by Digitimes, September 2009
| Gartner: EMEA server vendor revenue estimates, 2Q09 (US$) | |||||
| Company | 2Q09 revenues | Market share | 2Q08 revenues | Market Share | Y/Y |
| HP | 987,076,991 | 32% | 1,552,840,810 | 32.3% | (36.4%) |
| IBM | 933,565,694 | 30.3% | 1,513,864,427 | 31.5% | (38.3%) |
| Sun | 428,125,437 | 13.9% | 663,604,504 | 13.8% | (35.5%) |
| Dell | 299,362,037 | 9.7% | 412,602,548 | 8.6% | (27.4%) |
| Fujitsu | 168,625,587 | 5.5% | 277,972,116 | 5.8% | (39.3%) |
| Others | 266,743,832 | 8.7% | 380,564,829 | 7.9% | (29.9%) |
| Total | 3,083,499,578 | 100% | 4,801,449,235 | 100% | (35.8%) |
Source: Gartner, compiled by Digitimes, September 2009
| Gartner: EMEA server vendor shipment estimates, 2Q09 (units) | |||||
| Company | 2Q09 shipments | Market share | 2Q08 shipments | Market Share | Y/Y |
| HP | 200,421 | 40.8% | 293,621 | 40.6% | (31.7%) |
| Dell | 90,273 | 18.4% | 138,000 | 19.1% | (34.6%) |
| IBM | 62,359 | 12.7% | 95,861 | 13.3% | (34.9%) |
| Fujitsu | 31,207 | 6.3% | 40,775 | 5.6% | (23.5%) |
| Sun | 22,655 | 4.6% | 30,584 | 4.2% | (25.9%) |
| Others | 84,743 | 17.2% | 123,561 | 17.1% | (31.4%) |
| Total | 491,658 | 100% | 722,402 | 100% | (31.9%) |
Source: Gartner, compiled by Digitimes, September 2009
Article translated by Joseph Tsai
