HP, IBM Tie As Global Server Market Hits 12-Year Low - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
5/29/2009
05:45 PM
50%
50%

HP, IBM Tie As Global Server Market Hits 12-Year Low

Market conditions worsened across all geographic regions in the quarter, as customers of all types pulled back on spending, an IDC report shows.

Hewlett-Packard and IBM tied in the first quarter for the top spot in the global server market, as industry revenue fell to its lowest level in at least a dozen years.

The two vendors each accounted for 29.3% of the market. Dell and Sun Microsystems also found themselves in a statistical tie for second place, said IDC, which calls a tie when there is less than a 1% difference in revenue.

Dell in the quarter accounted for 11% of the market, and Sun 10.3%. The latest IDC numbers were released Thursday, the same day Dell reported a 63% drop in profits and a 23% decrease in overall revenue in the first quarter. Fujitsu/Fujitsu Siemens came in last among the top five vendors with a 6.7% market share.

The overall server market declined 24.5%, compared to the first quarter of 2008, to $9.9 billion. The decrease was the third in as many quarters and the lowest quarterly server revenue since IDC started tracking the market 12 years ago. Server shipments fell 26.5% in the quarter from a year ago to lowest quarterly level in five years. The year-over-year drop was the largest ever, IDC said.

IDC analyst Matt Eastwood said market conditions worsened across all geographic regions in the quarter, as customers of all types pulled back on spending.

"Most enterprise organizations are deferring new IT procurements and instead focusing on extending server life cycles and improving existing asset utilization," Eastwood said in a statement. "IDC believes that while these strategies are effective in the near term, server demand will begin to improve in the second half of the year as customers begin to rebuild their IT capabilities in advance of a meaningful economic recovery in 2010."


Attend a Webcast on data center consolidation. It happens June 3. Find out more and register.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll