The State of the Server Hardware Market

Significant growth in 2010

According to research firms IDC and Gartner, revenue in the worldwide server hardware market increased between 15.3%-16.4% percent year over year to $15.0 billion in the fourth quarter of 2010 (4Q10). This was the highest quarterly revenue in three years and the fourth consecutive quarter with improving year-over-year revenue growth as the market continued to accelerate throughout the calendar year of 2010.

“The 2010 growth was a combination of pent-up demand and the replacement cycle”, said Jeffrey Hewitt, Research Vice President at Gartner.

Gartner released their worldwide server market research findings on Feb. 24 2011. Days later, IDC came out with their 4Q 2010 worldwide server market revenue report on Feb. 28, 2011. Both reports were very consistent in their findings.

The ‘Big Three’ Server Vendors

IBM held the top position in the worldwide server systems market with 35.5%-37.4% market share in factory revenue for 4Q10, as revenue increased 21.9%-26.4% year over year. IBM had strong improvement in demand for its System z mainframe systems and continued demand for x86-based System x servers in the quarter.

HP came in second with 29.9%-30.4% share for the quarter as revenue increased 12.8%-13.2% percent compared to 4Q09. HP was helped by continued demand for its x86-based ProLiant servers.

Dell maintained third place with 12.6%-13.1% revenue market share in 4Q10. Dell experienced 26.4%-26.8% revenue growth compared with 4Q09 due to strength in demand from SMB, enterprise, and public sector customers.

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Below is a full breakdown of the state of the worldwide server market for the fourth quarter of 2010 and all of 2010, as compiled by IDC and Gartner

4Q10 Worldwide Server Market Share

 

Notable highlights:

– Worldwide server revenue grew by more than 15% in 4Q10
– Dell and IBM had the largest server revenue growth by around 26% in 4Q10
– IBM handily claimed the server market share lead in 4Q10
– HP lead the blade server market, with a 53.4% revenue share in 4Q10

Gartner: Worldwide Server Vendor Revenue Estimates, 4Q 2010 (U.S. Dollars)

Company4Q10Revenue4Q10 Market Share (%)4Q09Revenue4Q09 Market Share (%)4Q09-4Q10 Growth (%)
IBM5,213,930,59435.54,125,145,12532.726.4
HP4,457,791,86730.43,951,339,52431.312.8
Dell1,920,161,04913.11,519,699,04712.126.4
Oracle805,582,2645.5960,830,4937.6-16.2
Fujitsu560,391,9573.8563,384,6424.5-0.5
Other Vendors1,720,448,65311.71,486,168,25911.815.8
Total14,678,306,384100.012,606,567,089100.016.4

Source: Gartner (February 2011)

IDC: Worldwide Server Vendor Revenue Estimates, 4Q 2010 (Revenues are in Millions)

Vendor4Q10 RevenueMarket Share4Q09 RevenueMarket ShareQ410/Q409 Revenue Growth
1. IBM$5,59237.4%$4,58735.4%21.9%
2. HP$4,47029.9%$3,95030.4%13.2%
3. Dell$1,88712.6%$1,48911.5%26.8%
4. Oracle$8835.9%$1,0328.0%-14.4%
5. Fujitsu$5413.6%$5974.6%-9.4%
Others$1,58610.6%$1,32110.2%20.1%
All Vendors$14,960100%$12,975100%15.3%

Source: IDC (February 2011)

 

2010 Worldwide Server Market Share

Notable highlights:

– Worldwide server revenue grew by more than 11% in 2010
– The Big Three server vendors, IBM, HP, and Dell, earned around 75% of worldwide server revenue of $48 billion
– HP and IBM remained in a virtual tie
– Oracle saw its server revenue decline by 14.0%-17.7% in 2010

Gartner: Worldwide Server Vendor Revenue Estimates, 2010 (U.S. Dollars)

Company2010Revenue2010 Market Share (%)2009Revenue2009 Market Share (%)2009-2010 Growth (%)
HP15,332,765,04031.412,892,126,55129.918.9
IBM15,045,308,59130.813,771,714,54032.09.2
Dell7,187,356,46414.75,472,746,06312.731.3
Oracle3,095,981,8316.33,762,609,8928.7-17.7
Fujitsu2,141,541,8494.42,037,072,2034.75.1
Other Vendors5,990,286,84912.35,149,979,77512.016.3
Total48,793,240,624100.043,086,249,024100.013.2

Source: Gartner (February 2011)

IDC: Worldwide Server Vendor Revenue Estimates, 2010 (Revenues are in Millions)

Vendor2010 RevenueMarket Share2009 RevenueMarket Share2010/2009 Revenue Growth
1. IBM$15,35631.9%$14,15332.7%8.5%
1. HP$15,32431.8%$12,88829.8%18.9%
3. Dell$7,01414.6%$5,22712.1%34.2%
4. Oracle$3,2796.8%$3,8128.8%-14.0%
5. Fujitsu$2,1944.6%$2,1945.1%0.0%
Others$4,97010.3%$4,94411.4%0.5%
All Vendors$48,137100%$43,218100%11.4%

Source: IDC (February 2011)

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