Gartner Says Worldwide Server Market Showing Signs of Stabilization In Spite Of Yearly Declines in Shipments of 17.1 Percent and Revenues of 15.5 Percent

Worldwide server shipments for the third quarter of 2009 dropped 17.1 percent over the same quarter last year, while worldwide server revenue for the same period declined 15.5 percent according to Gartner, Inc. Worldwide server revenues totaled $10.7 billion for the quarter, as worldwide servers shipments reached 1.2 million units.

“It is important to put the yearly declines into perspective,” said Jeffrey Hewitt, research vice president at Gartner. “Looking at the third quarter results from the sequential perspective, they showed an increase of 13.8 percent in shipments and 10.2 percent in revenues when compared to the second quarter of this year. That suggests that the market as a whole is showing signs of stabilization as we move toward the end of 2009.”

IBM held the revenue lead in the worldwide server market for the quarter. IBM’s overall revenue share lead over second-place HP was 1.5 percent for the quarter. Four of the top 5 vendors posted double-digit declines in revenue year over year. However, all of the top tier vendors experienced sequential revenue growth, except for Sun Microsystems.

In server shipments, Hewlett-Packard retained its worldwide server shipment lead, as its market share reached 32.1 percent in the third quarter of 2009. Dell maintained the No. 2 ranking as its share totaled 22.8 percent. HP’s shipment performance was driven primarily by its ProLiant brands.

While the global server providers all posted year-on-year shipment declines for the quarter, all of the vendors experienced sequential shipment increases for the period.

Additional information is available to subscribers of Gartner Dataquest’s Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, sub brand, CPU type, CPU group, Max CPU, platform, price band, operating systems and distribution channels.

Indian Server Market for July- August -September ’09
Overall Indian server market totaled at around US$118million during this quarter registering a year-on-year decline of 28.3 percent. This market decline could be partly contributed to the sluggish economic situation coupled with seasonality observed around this quarter. Gartner expects that the OND quarter should be much better primarily fuelled by a lot of pent up demand coupled with year end buying. Overall, Hewlett Packard emerged as the market leader followed by IBM and Sun Microsystems. HP and IBM were the worst affected vendors due to the limited market server demand during this quarter in India.

x86 servers accounted for around 59 percent of the market revenue leading to a revenue increase of 4.4 percent, as compared to last quarter. This further suggests that India CIO’s have started selective purchase of servers, which can be considered as early signal of economic recovery. India companies have undertaken a lot server refresh and consolidation projects. Virtualization has been a key driver for such deployments in large as well as mid-market territory. On the other side, non x86 segment of the server witnessed a sequential decline of 35.9 percent this quarter. Some of the large projects seem to be deferred for the next quarter.

About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.

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