Yesterday we reported that server revenues in Europe the Middle East and Africa (EMEA) only showed minor growth.
Those were figures from Gartner. But data from its deadly rival IDC indicate that things were less gloomy for server vendors in the third quarter of this year.
IDC said vendor revenues worldwide rose by 4.8 percent, year on year, to represent revenues of $12.7 billion.
This, said IDC, is the second quarter in a row that the server market has shown a year on year increase in revenue terms.
And shipments in the quarter improved 5.7 percent year on year, representing 2.38 million units. This is largely down to increased spending on hyperscale datacentres. IDC believes it is seeing signs of companies refreshing their servers, which is good news for 2015 too.
There is a difference depending on the type of server. Volume systems showed 8.8 percent revenue growth, midrange systems showed an 18.4 percent growth year on year. But high end enterprise systems plummeted by –23.2 percent, year on year.
IDC figures show HP is n number one place, followed by IBM, Dell, Cisco and Oracle. The “ODM Direct” category is interesting because these are largely Taiwanese companies producing unbranded boxes for multinationals – with prices to match. This chart shows the changes.
Like Gartner, IDC saw a recline in non X86 servers – the thirteenth consecutive quarter of revenue decline. IBM is in pole position here, with a share of 60.8 percent share. Blade servers accounted for 18 percent of total server revenues in the quarter.
Shipments of servers in Europe, the Middle East and Africa (EMEA) fell by four percent in the third quarter of 2014 but revenues rose by 1.2 percent year on year to amount to $2.9 million.
Gartner said that growth seen in the second quarter of this year was “a short lived phenomenon and marginal revenue growth…highlights the fragility of demand”.
But despite this, revenues grew for the third consecutive quarter following 10 previous quarters where revenues declined.
HP managed to grow its revenue lead in the regions with 6.4 percent growth, although shipments declined by 8.2 percent. The growth was largely accounted for by demand for rack optimised and blade system.
Dell managed to displace IBM as second in place in terms of both revenues and shipments. It managed to grow nine percent in revenues and 3.4 percent in shipments. IBM, of course, is ridding itself of its X86 business to Lenovo, while its RISC shipments were hit by a fall in demand for Unix systems. Its lucrative mainframe business is in stasis as Big Blue readies new launches.
Gartner thinks one of the problems is that IT departments in enterprises are struggling because there are datacentre modernisation initiatives which means they are taking their eyes off the ball in the traditional server marketplace.
If RISC, the Intel Itanium and Unix revenues are counted as one, they fell in the quarter by 13.2 percent.
Worldwide shipments of servers only grew 1.9 percent in the third quarter of this year, but revenues fell 2.1 percent compared to the same quarter last year. Big Blue fared particularly badly.
That’s according to the Gartner Group, which said that the worldwide server market is continuing to show weak performance.
There were some bright spots – the Canadian market grew by 6.5 percent, EMEA by 12.1 percent. But the US only showed 0.9 percent growth.
On the X86 server front, units grew by only 2.1 percent year on year but 4.4 percent in revenue. RISC, Itanium and Unix servers fell by 4.5 percent in shipments and 31 percent in revenues.
HP is king of the worldwide server castle, folllowed by IBM, Dell, Cisco and Oracle.
Blade servers fell by 1.5 percent in shipments while racks grew by 2.6 percent in shipments but fell by 1.8 percent in revenues.
Europe fared badly overall, with revenues down 4.3 percent compared to the same quarter.
Gartner analyst Adrian O’Connell said: “Ther performance of server shipments and revenue in EMEA is in a downward spiral. Revenue has now declined for nine consecutive quarters and shipments have declined for eight.”
He said server revenues across EMEA is at its lowest level for over 15 years.
IBM fared particulalry badly, seeing its revenues fall by 19.2 percent. O’Connell said that the EMEA market is “resetting itself” for vendors that relied on high end platforms. He said the fourth quarter is also expected to be weak.