Hewlett-Packard, IBM and Dell continue to
lead an increasingly healthy server market that also saw Unix and
mainframe revenue grow, according to market research firm Gartner.
overall server market in the first quarter had revenue growth of 17.3
percent‚Äîto $12.6 billion‚Äîand shipment increases of 8.5 percent, to 2.3 million
units, according to numbers Gartner released May 26.
numbers echoed those
analyst firm IDC released two days earlier, and showed that HP was again
tops in both worldwide server revenue and shipments, with market share of 30.2
percent and 29.8 percent, respectively. IBM
was second in revenue and third in shipments; Dell was third in revenue and
second in shipments.
x86 server market continued to grow, jumping 8.6 percent in units shipped and
17.5 percent in revenues, according to Gartner. And like their IDC
counterparts, Gartner analysts also saw healthier Unix server and mainframe
Unix servers finally exited their slump and grew 5.2 percent in shipments and
20.7 percent in vendor revenue, compared with the same quarter last year,‚Äù
Jeffrey Hewitt, research vice president at Gartner, said in a statement. ‚ÄúThe
‚Äòother‚Äô CPU category, which is primarily mainframes, showed a growth in vendor
revenue of 19.6 percent.”
an interview with eWEEK, Jean Bozman, research vice president of enterprise
servers at IDC, said the non-x86 server market was hit particularly hard by the
recession in 2009, which significantly slowed server purchases. However, with
the economy improving and new technology hitting the market‚Äîfor example, Oracle
released its 16-core SPARC T3 chips in September 2010, IBM
launched new Power7-based
systems last year and HP is putting Intel‚Äôs
quad-core Itanium 9300 ‚ÄúTukwila‚Äù chips in its high-end Integrity
servers‚Äîenterprises are beginning to buy hardware again.
it shows is that customers are feeling a little more optimistic with IT
spending and IT infrastructure, and are building out projects that were put on
hold several years ago,‚Äù Bozman said, noting the growth in server sales across
all industry segments.
addition, both Gartner and IDC noted that networking
giant Cisco Systems, which two years ago entered the server space with its
UCS (Unified Computing System) converged data center offering, is now gaining
market share. IDC had Cisco as the third-largest x86 blade server vendor, and
seventh-largest server vendor worldwide.
addition, Gartner has Cisco as the fifth-largest x86 server vendor with more
than $194 million in revenue in the first quarter‚Äîup from more than $35 million
during the same time last year‚Äîand 2.3 percent market share. During the first
quarter in 2010, Cisco‚Äôs market share was .5 percent.
rapid growth [in the x86 blade market] underscores our leadership in the
industry transition to fabric computing and converged infrastructure,‚Äù Soni
Jiandani, vice president for Cisco‚Äôs UCS business, said in a May 24 blog
market numbers underscore the work officials have done to sell their UCS
offering, which was created in partnership with the likes of EMC
and VMware. The UCS offers a tightly integrated package of servers, storage,
networking, virtualization and management software.
Cisco began shipping UCS slightly over two years ago, competitor reaction
ranged the gamut from concerned to gleefully dismissive of their chances at
success in the server market,‚Äù Forrester Research analyst Richard Fichera wrote
in a May
25 blog post. ‚ÄúThe reasons given for their guaranteed lack of success were
a combination of technical (the product won‚Äôt really work), the economics
(Cisco can‚Äôt live on server margins) to cultural (Cisco doesn‚Äôt know servers
and can‚Äôt succeed in a market where they are not the quasi-monopolistic
dominating player). ‚Ä¶ Any lingering doubt about whether Cisco can become a
credible supplier has been laid to rest.‚Äù
said Cisco has been reporting ‚Äúa steady and impressive growth in customers
since initial shipment,‚Äù and that Forrester has seen ‚Äúboth the significant
interest and installed UCS systems‚Äù among its clients.
a May 11 conference call with analysts and journalists to announce the
company‚Äôs quarterly earnings, Chairman and CEO John Chambers lauded the data
center business, noting that the company now has 5,400 UCS customers and an
annual run rate of $900 million for UCS product orders. In addition, businesses
worldwide shifted 10 percent of their x86 blade spending to the UCS, according
to Cisco. That number was 20 percent in the United