This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Gartner: Dell Suffers 'Atypical' Decline In 1Q Server Revenue
Mostly, a new report says, x86 servers continue to show positive growth, while RISC-Itanium server sales continue to drop.
Dell, which has been aggressively cutting prices in a competitive market, suffered a server revenue drop of 2 percent in the first quarter of 2006, according to numbers reported by Gartner Tuesday.
Worldwide server shipments for the first quarter of 2006 increased 13.7 percent over the same quarter last year while average worldwide server revenue remained flat, the research firm said.
Worldwide server revenue totaled $12.4 billion in the first quarter of 2006, compared with $12.3 in the first quarter last year. Worldwide server shipments totaled nearly 2 million units in the first quarter of 2006, up from 1.7 million units in the same period last year.
In a statement, Gartner said Dell's revenue drop for the period was "atypical." Dell's shipments increased 7.1 percent in the same period, a rate lower than Hewlett-Packard, IBM and Sun Microsystems.
Sun, meanwhile, returned to server revenue growth for the first time in almost two years, driven by increases in its UltraSPARC and its Opteron-based server revenue.
While Dell, which focuses on x86 servers, appears to have been dealt a slight setback, the RISC-Itanium category suffered a bigger beating.
Jeffrey Hewitt, research director at Gatner said in a statement that x86 servers continue to show positive growth while RISC-Itanium server sales continue to drop. RISC-Itanium Unix servers fell about 0.9 percent in shipments for the quarter but dropped a more significant 5.1 percent in revenue.
"The decline at the high end and the replacement at the low end with Linux on x86 servers continue to put negative pressure on this portion of the market,” Hewitt said.
Blade servers also showed strong growth again, with volumes increasing 46 percent over the same period last year, according to Gartner. IBM holds the leading market position in blade servers in volume and revenue terms, Gartner said.
IBM continued to lead the worldwide server market based on revenue. However, the company's revenue decreased 3.7 percent in the first quarter, while the total market remained flat for the same period. IBM’s revenue decline was driven primarily by drops in its iSeries, pSeries, and zSeries lines. Its x86-based servers outperformed the market, growing 11 percent in revenue for the quarter to provide a degree of counterbalance to the decline.
In server shipments, HP retained its lead in the first quarter and posted yearly growth of 8 percent. However, this was lower than the overall industry shipment increase of 13.7 percent. HP’s ProLiant servers grew 8.3 percent while HP Integrity Itanium servers grew 29.9 percent for the quarter.
We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
State of the CloudCloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
IT Careers: Tech Drives Constant ChangeAdvances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!