IBM Cloud Authors: Zakia Bouachraoui, Pat Romanski, Elizabeth White, Liz McMillan, Yeshim Deniz

Related Topics: Microservices Expo, IBM Cloud, Recurring Revenue, Log Management

Microservices Expo: Article

Server Sales Were Healthy in Q2: IDC

Worldwide server revenues surged 11% to $10.9 billion

Worldwide server revenues surged 11% to $10.9 billion in Q2, according to IDC, which calls it the second consecutive quarter of year-over-year revenue growth, the fastest quarterly revenue growth since 2003 and the fourth consecutive quarter of improving server market demand.

Trouble is that was two months ago and, what with Wall Street saying PC demand has subsequently tanked, one would really like to know whether server sales are still looking better.

Based on its Q2 numbers IDC says it "continues to see widespread infrastructure refresh occurring across all geographies. While much of this refresh is occurring first in x86-based servers, IDC expects the recovery to extend to Unix and mainframe platforms in the second half of 2010."

Guess we'll see.

Anyway, server unit shipments increased 23.8% in Q2, indicating there was real appetite out there.

Blades, regardless of species, had the ascendancy. They saw the largest revenue growth of any market segment, IDC said, up 40.3% year-over-year to $1.6 billion on shipments up 13.6%. More than 80% of all blade revenue was x86, representing 18.9% of all x86 server revenue.

IDC attributes the trend to blades' enhanced virtualization, management and I/O capabilities. It said "customers are leveraging these technologies as part of converged systems that are a building block to future internal cloud infrastructures."

HP maintained the number 1 spot in server blades, with 58.8% revenue share. IBM finished with 22.6% revenue share.

x86 server revenues were up 31.7% to $7 billion on shipments up 25.8% to 1.8 million servers, positively impacting Windows server demand. IDC put Windows server revenue at $5 billion, representing 46.5% of overall quarterly factory revenue. Linux server revenues were up 30.1% to $1.8 billion, representing 16.8% of all server revenue, up 2.5 points over last year.

Demand for mid-range servers was up 15.6%, the first positive growth in the segment in nine quarters while demand for high-end enterprise systems continued to be soft with revenues down 27.2% year-over-year, the seventh consecutive quarter of contraction in the high end.

HP, which in Q2 was still run by Mark Hurd, remained number one with 32.5% of worldwide server factory revenue, up 26%. IBM was number 2 with 29.8%, down 3.2% ahead of the refresh of its Power Systems and mainframes. A year ago positions were reversed - IBM had 34.2% of the revenues and HP only 28.6%. IBM lost 6.4 points.

Unix server revenue overall was down 7.3% to $2.9 billion, representing 26.3% of quarterly server spend (down a huge 52 points over 2Q09). However IDC expects the decline in Unix to moderate this half.

Dell was third worldwide with 15.3% of revenues, up 36.5% to gain 2.9 points of market share. Oracle, the new Sun, was fourth with 5.9% of revenue, with its market share dropping to 8.6%. Fujitsu's revenues were up a 7.9%, giving it a market share of 3.4%.

Each of the top 5 server vendors had positive x86 server revenue growth in the quarter. HP led the market with 39.2% revenue share. Dell retained second place, with 23.9% and IBM was third with 16.7%. IDC says the quarter saw the fastest year-over-year factory revenue growth in x86 servers in more than 10 years.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

IoT & Smart Cities Stories
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...