Server Vendor Revenue Estimates, 1Q13

Gartner just published 1Q13 Worldwide server market share:
http://www.gartner.com/newsroom/id/2497015

Worldwide: Server Vendor Revenue Estimates, 1Q13 (U.S. Dollars)

Company	1Q13 Revenue	1Q13 Market Share (%)	1Q12 Revenue	1Q12 Market Share (%)	1Q13-1Q12 Growth (%)
IBM	3,016,060,031	25.5	3,490,477,200	28.0	-13.6
HP	2,959,030,197	25.0	3,455,759,513	27.8	-14.4
Dell	2,124,462,397	18.0	1,857,578,951	14.9	14.4
Fujitsu	583,238,840	4.9	626,721,932	5.0	-6.9
Oracle	538,542,499	4.6	739,825,931	5.9	-27.2
Others	2,604,390,348	22.0	2,273,724,071	18.3	14.5
Total	11,825,724,312	100.0	12,444,087,599	100.0	-5.0

Source: Gartner (May 2013)

Top Server Market Findings

• Revenue declined 5.0 percent from the first quarter of 2012
• x86 server shipment growth was flat in the quarter, while revenue increased 1.8 percent. 
• RISC/Itanium Unix servers had a 38.8 percent drop in shipments and were down 35.8 percent in vendor revenue compared to the same quarter last year. This is due to migrations to alternative platforms by users seeking lower-cost alternatives and more flexibility
• It gets even more disruptive when considering the Open Compute Project. The open hardware organization, spearheaded by Facebook, is making a notable impact through its efforts to open-source servers and network switches.

The drop in server sales is not at all surprising. Cloud apps are popping up by the thousands across the market, as the developer movement speeds up. But these apps are not surfacing from that souped-up x86 server made for big workloads. Developers instead are turning to the cloud. Enterprise companies are buying fewer of those high-priced machines that customers once bought when IT budgets were plentiful.

The server business foreshadows what’s to come. Enterprise companies will have to adapt to a new rock-bottom-priced server market and an open-source movement quickly gaining steam.

Cloud companies like Facebook, Google and Amazon buy their hardware directly from low-cost asian original design manufacturers like Huawei, Quanta, Compal Electronics and Wistron. This cuts out traditional IT vendors from these server sales. Facebook's Open Compute project is open sourced hardware, it lays out the blueprint how to do low cost infrastructure and energy efficient design. 





IDC also published 1Q13 Worldwide server market share:
http://www.idc.com/getdoc.jsp?containerId=prUS24136113

Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, First Quarter of 2013 (Revenues are in Millions) 

Vendor	1Q13 Revenue	1Q13 Market Share	1Q12 Revenue	1Q12 Market Share	1Q13/1Q12 Revenue Growth
1. HP	$2,947	26.9%	$3,460	29.2%	-14.8%
2. IBM	$2,793	25.5%	$3,224	27.2%	-13.4%
3. Dell	$2,028	18.5%	$1,842	15.5%	10.1%
4. Fujitsu*	$562	5.1%	$614	5.2%	-8.5%
4. Oracle*	$528	4.8%	$716	6.0%	-26.2%
4. Cisco*	$450	4.1%	$334	2.8%	34.9%
Others	$1,655	14.0%	$1,627	14.9%	-1.7%
All Vendors	$10,936	100%	$11,846	100%	-7.7%

Source: IDC's Worldwide Quarterly Server Tracker, May 2013

Top Server Market Findings

• Linux server demand was positively impacted by high performance computing (HPC) and cloud infrastructure deployments, as hardware revenue improved 3.4% year over year in 1Q13 to $2.5 billion. Linux servers now represent 23.1% of all server revenue, up 2.5 points when compared with the first quarter of 2012.

• Microsoft Windows server hardware revenue declined 4.2% year over year in 1Q13 with quarterly server hardware revenue totaling $5.7 billion representing 52.2% of overall quarterly factory revenue, up 1.9 points over the prior year's quarter.

• Unix servers experienced a revenue decline of 35.9% year over year to $1.4 billion representing 12.6% of quarterly server revenue. This was the seventh consecutive quarter of revenue decline in the Unix server market and all major Unix server vendors experienced a year-over-year revenue decline in the quarter when compared with the first quarter of 2012.

• IBM's System z mainframe running z/OS experienced its second consecutive quarter of growth, increasing revenue 7.0% year over year to $0.8 billion, representing 7.7% of all server revenue in 1Q13.