Factory revenue overall worldwide decreased by 6.2 percent – but still netted $11.9 billion for the second quarter of 2013 alone. This was the second consecutive year of revenue decline as demand weakened in most regions around the world, while server unit shipments dropped 1.2 percent to 2.0 million units, the third consecutive quarterly decline.
Volume systems dropped 2.4 percent, while midrange system demand decreased a chunky 22.3 percent. High end systems decreased 9.5 percent.
HP was just behind IBM with 25.9 percent of the market. HP also experienced a 17.5 percent decline in factory revenue, as well as poor demand for the x86 ProLiant servers and continued declines in HP Integrity demand.
Dell came in third with 18.8 percent factory market share for the quarter, but factory revenues were up 10.3 percent compared to the same time last year, pitching Dell at its highest ever market share.
Oracle stayed at number four, holding six percent market share, with factory revenue decreases of 5.7 percent compared to the same time last year. Cisco was fifth with 4.5 percent share, but experienced a 42.6 percent yearly revenue growth, putting it above last quarter’s tie with Fujitsu.
IDC’s GM for enterprise platforms, Matt Eastwood, said: “Mainstream SMB and enterprise server customers around the world continue to focus on consolidation, virtualization, and migration initiatives aimed at increasing efficiency and lowering datacenter infrastructure costs. At the same time, challenging economic conditions are dampening demand for new IT projects necessary to grow the server market globally”.
“It is clear that the competitive dynamics in the server market remain fierce as the leading server vendors work to offset weak demand for generally higher margin Unix and blade servers with lower margin rack and density optimised servers,” Eastwood said.