News Servers v2 11/12/08 12:27 Page 8
Shipments up, but revenue reduced
Worldwide server shipments for the held the revenue lead in the worldwide Africa (EMEA), server shipments
third quarter of 2008 increased 4.4 per server market for the quarter. This totalled more than 68,000 units in the
cent over the same quarter last year, was fuelled by sales of both the third quarter of 2008, a 5.8 per cent
while worldwide server revenue for the System p and System z brands. IBM’s growth from the same period last year
same period declined 5.4 per cent overall revenue share lead over (see Table 4). Server revenue totalled
according to Gartner, Inc. Worldwide second-place Hewlett-Packard was 0.5 $3.9 billion in the third quarter of
server revenues totalled $12.7 billion per cent for the quarter. 2008, a 5.4 per cent decrease over the
for the quarter, as worldwide servers same quarter last year.
shipments reached 2.3 million units. In server shipments, HP grew 11.4 per
“Server shipments grew in the third cent compared to the third quarter of “Effects of a weaker economy bit the
quarter, but the spectre of constrained 2007, and retained its worldwide server market in the third quarter of
economies and tightened credit was server shipment lead. The share gap 2008, which marked the first year-on-
felt in the revenue area,” said Jeffrey between it and second-place Dell year decline in server revenues since
Hewitt, research vice president at increased 2.1 percentage points for the the second quarter of 2006,” said Errol
Gartner. “What we’ve seen is larger quarter (see Table 2). HP finished the Rasit, senior research analyst at
system purchases in the Unix area put quarter with its shipment market Gartner. “However, server shipments
in check. At the same time x86 servers share reaching 31.2 per cent for the continued to grow at 5.8 per cent,
were able to maintain some shipment period. HP’s growth came from its demonstrating healthy performance in
momentum, but lower overall average ProLiant brands. HP pushed its blade the x86 market.”
x86 server selling prices resulted in a server shipment share upward 3.9 per
drop in revenue in the quarter for this cent to reach a total of 46.4 per cent Except for HP, all the other leading
server type as well.” for the quarter. vendors experienced a decline in
revenue in the third quarter of 2008
“Evidence of a challenged RISC- Dell and Sun both posted shipment (see Table 3). HP held the revenue lead
Itanium Unix server area appeared in growth for the quarter at 3.3 per cent in the EMEA server market for the
a fall of 16.1 per cent in shipments and 2.9 per cent, respectively. IBM’s quarter, with 0.9 per cent year-on-year
and 10.8 per cent in revenue,” Mr server shipments fell 3.5 per cent and growth.
Hewitt said. The top five vendors all Fujitsu/Fujitsu Siemens’ server
experienced a decline in revenue in the shipments dropped 3.8 per cent for the In server shipments, HP retained its
third quarter of 2008 (see Table 1). IBM quarter. In Europe, the Middle East and market share which helped it maintain
Worldwide: Server Vendor Revenue Estimates, 3Q08 (US Dollars)
Company 3Q08 3Q08 3Q07 3Q07 Market 3Q08-3Q07
Market Revenue Share (%) Growth (%)
Share (%)
IBM 3,856,826,095 30.3 4,026,746,389 30.0 -4.2
Hewlett-Packard 3,793,197,226 29.8 3,946,402,502 29.4 -3.9
Dell Inc. 1,500,603,160 11.8 1,582,838,318 11.8 -5.2
Sun Microsystems 1,158,251,731 9.1 1,341,466,786 10.0 -13.7
Fujitsu/Fujitsu Siemens 616,753,331 4.8 665,460,127 5.0 -7.3
Others 1,791,514,236 14.1 1,878,940,160 14.0 -4.7
Total 12,717,145,779 100.0 13,441,854,282 100.0 -5.4
Source: Gartner (December 2008)
Table 1
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