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Servers (world market)

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Content

2019

Deliveries of 12.1 million servers (+2.4%)

The amount of the world market of servers in 2019 was 12.1 million pieces, having increased by 2.4% in comparison with previous year. Data of ResearchAndMarkets analytical company which were published on May 19 the 2020th demonstrate to it.

According to experts, sales of servers on a global scale at the end of 2019 could be higher if not the American-Chinese trade conflict because of which supplies of equipment suffered.

The market of servers completed 2019 with growth by 2.4%

Characterizing alignment of forces in the server market, analysts among five largest suppliers listed the companies Dell EMC HPE Inspur, Huawei and Lenovo. At Huawei of delivery of servers were reduced for already mentioned reason – trade disagreements of Beijing and Washington.

In number of the factors which are still promoting growth of the server market, analysts carried an IT equipment turnover cycle in the companies, strong demand from suppliers of cloud services, the growing use of servers as the main construction units for deployment of software-defined infrastructure. Besides, experts point to broad interest to new Intel processors and the increasing distribution of workloads of new generation.

Researchers say that the outbreak of a coronavirus of COVID-19 painfully struck participants of the markets of computers, mobile phones, etc., but almost did not mention the server industry. The matter is that because of spread of a disease of the company began to pass to remote work of employees therefore demand for the cloud and other computing ensuring functioning of personnel from the house significantly grew. It, in turn, urges on sales of servers.

ResearchAndMarkets considers that at the end of 2020 the world server market will grow by 3%, despite COVID-19 pandemic.[1]

Decline of the market by 3.1% in pieces and for 2.5% in money (Gartner)

The amount of the world market of servers in kind at the end of 2019 was reduced by 3.1% concerning the 2018th, and revenue from sales of this equipment sank for 2.5%. Such data were provided by analysts of Gartner who at the same time do not give absolute values in the selection to a paid research.

However earlier in Gartner reported what in 2018 came 12.9 million items of equipment to the world market of servers for the amount of $78.06 billion. Taking into account these digits it turns out that in the 2019th market size was 12.5 million pieces for the amount of $76.1 billion.

Market leaders of servers in money, data of Gartner

The market of servers showed recession, despite high rates at the end of 2019 when strong demand for the equipment from operators of hyper scalable data centers renewed. Thanks to such clients the ODM manufacturing selling products directly to DPCs could increase sales significantly. One more positive factor for server steel market the increased purchases of the systems which are not using processor architecture of x86.

Among the largest producers of servers the leader it is called Dell EMC of which in 2019 16.3% of quantitative deliveries of devices and 20.5% of revenue were the share. HPE took the second place with a market share of 17.3% in money and 12.3% in pieces.

Market leaders of servers in pieces, data of Gartner

Inspur was the only server vendor at which in 2019 both income, and piece deliveries in the market of servers grew. Inspur is in the lead in the house (Chinese) server market and aims to select the products against the background of competitors, using, in particular, elements of artificial intelligence, experts note.

In the first months 2020 analysts record strong surge in demand for servers because of a pandemic of a coronavirus of COVID-19 which pushes the companies to pass to remote work, and — it is more and more time to spend users on the Internet.[2]

Market leaders according to TrendForce

On December 23, 2019 the TrendForce analytical company published some results of a research of the world market of servers. According to experts, in the 2019th sales of the equipment remained at the level of previous year because of the American-Chinese trade war which undermined demand and pushed producers to relocation of facilities from the People's Republic of China to other countries.

This negative factor could become the reason of falling of the server market in 2019, but the situation was improved by the increased demand for the equipment from operators data centers in the second half of the year. First of all, it is about the companies Amazon Web Service (AWS) and Facebook.

The largest producers of servers given to TrendForce

Google and Microsoft reduced purchases of servers partly because of change of a location of production capacities.

According to TrendForce, the largest producers of servers in 2019 remained on the places. Leadership reserved Dell EMC of which 15.8% of supplies of equipment against 16.7% in 2018 were the share. HPE with a 13.8% share was at the second place.

In 2019 sales of servers fell almost at all participants top-5, except Inspur which managed to record growth by 11%. As a result the market share of the Chinese vendor in a year rose from 7.8% to 8.7%. According to experts, the conflict between the USA and China trade was to the good for Inspur.

In a research it is noted that at Huawei which fell under sanctions of the USA which limited the companies purchase of components, necessary for servers, of delivery in 2019 4.8% decreased. Nevertheless, analysts note that after in the third quarter progress was outlined in negotiations between Washington and Beijing, demand for the server hardware of Huawei began to be recovered, in particular in domestic market of the company. This trend should remain in 2020.[3]

2018

Growth of the market of cloud servers by 29% to $86 billion is Counterpoint Research

The amount of the world market of the servers used for start and functioning of cloud services in 2018 reached $86 billion, having increased by 28% concerning the 2017th. Such data published on May 5, 2019 analysts of Counterpoint Research.

Sales of the considered equipment increased thanks to demand from owners of large data centers, including Equinix and Digital Realty Trust and also the leading suppliers of cloud services, such Microsoft, Amazon Web Services (AWS) and Google. These companies also offer IaaS services (infrastructure as service) which users receive the computing infrastructure managed on the Internet, the senior analyst of Counterpoint Research Prachir Singh noted.

The largest producers of cloud servers experts call the companies HPE and Dell EMC which at the end of 2018 received approximately identical market shares — about 16%. Nearly a half of revenue fell on the leading five.

The largest producers of cloud servers given to Counterpoint Research

Specialists note rapid growth of the Chinese vendors, especially Inspur Power Systems and Huawei which in 2018 increased sales of servers by 72% and 33% respectively.

Besides, the Taiwan ODM manufacturing supplying the equipment directly to data centers strengthen the positions. The share of such players whom, in particular, Foxconn, Wistron and Inventec treat reached 39% in a total amount of the market of cloud servers in terms of money.

The associate director of Counterpoint Research Brady Wang says that the Chinese and Taiwanese companies increase deliveries of servers thanks to low prices. Large operators of DPCs even more often prefer to buy the equipment from ODM suppliers to cut down expenses.

As a result of Inspur increased a share in the market of cloud servers in pieces from 3% in 2016 to 7% in the 2018th. The share of the ODM companies rose during this time from 19% to 25%.[4]

Growth by 13.1% in pieces and for 30.1% in money — Gartner

In 2018 quantitative deliveries of servers on a global scale increased by 13.1% concerning the 2017th, and revenue in the market jumped by 30.1%. The data of Gartner published on March 18, 2019 demonstrate to it.

Analysts did not give the absolute values characterizing a situation in the market. However earlier they announced shipment of 11.4 million servers for the amount of $60 billion at the end of 2017. It turns out that in the 2018th sales of servers reached 12.9 million units for the amount of $78.06 billion.

The greatest growth rates of the server market are registered in the Pacific Rim: here in 2018 rise for 38.3% in money and for 17.6% in pieces took place. In North America supplies of equipment increased by 34% and 15.9% respectively.

The size of the market of servers in EMEA region (Europe, the Middle East, Africa) at the end of 2018 increased by 3.1% in kind and for 20.4% in monetary. The Latin American market showed 20.9 percent take-off in terms of revenue, but dropped by 4.4% at calculation of piece sales. In Japan quantitative shipments of servers increased by 2.1% in 2018 concerning the 2017th, and in terms of revenue the market grew by 3.3%.

As the reasons of increase in demand for servers the senior analyst of Gartner Kiyomi Yamada calls the growing construction expenses new and updating of the operating data centers belonging to telecommunication operators and owners of hyper scalable DPCs (Amazon, Facebook, Microsoft, etc.). These companies increase expenses (though they less, than at the beginning of 2017) to meet demand for communication services and cloud services, the expert notes.

Gartner does not call the world's largest producers of servers according to the results of all 2018, but provide data for the fourth quarter (see tables below).[5]

Market leaders of servers in terms of revenue, data of Gartner
Market leaders of servers in terms of piece deliveries, data of Gartner

Growth by 5% up to 12.42 million is DRAMeXchange

On December 20, 2018 the DRAMeXchange analytical company provided results of a research of the world market of servers. Its volume as experts counted, in 2018 reached 12.42 million pieces, having increased by 5% of rather previous year.

According to the senior analyst of DRAMeXchange Mark Liu, the main merit in growth in sales of servers on a global scale belongs to the American branded Dell EMC HPE producers (i) on which more than 30% of shipments of the equipment were necessary. More detailed information on alignment of forces in the market is given in the table below.

The largest producers of servers given to DRAMeXchange

In a research it is said that during 2018 producers of branded servers could show considerable recovery: in the first quarter the companies endured small recession owing to a seasonal factor, but in the second quarter increased deliveries to more than 10%, and in July-September achieved peak shipments to 3.2 million pieces.

As for percentage breakdown by types of servers, the most part of world deliveries are the share of corporate servers, and the share of the equipment used in data processing centers raised almost up to 35% in 2018 because demand in this segment is to a lesser extent subject to a seasonal factor. The ODM manufacturing delivering servers directly in DPCs in the first half of 2018 increased revenue in North America by 17%, and in the second half of the year - for 12%. Specialists explained growth deceleration with inventory adjustments of products and reduction of a capital expenditure.

According to DRAMeXchange calculations, in 2018 Inspur delivered nearly 1 million servers from which about 30% were the share of the Chinese market. The vendor receives the most part of orders from the Chinese Internet companies, including such giants as Baidu, Alibaba Group and Tencent. Also the 20 percent growth of deliveries of servers of Huawei thanks to stable orders from telecommunication operators is noted.[6]

2017: Return to growth — data of Gartner

In 2017 the world market of servers returned to growth thanks to improvement of a macroeconomic situation and the growing demand for the equipment from the companies and owners of large data centers, report in Gartner research company.

Deliveries of servers on a global scale at the end of 2017 increased by 3.1% and reached about 11.4 million pieces, and revenue increased by 10.4%, having made nearly $60 billion. In 2016 the market dropped almost by 3% in money and showed almost zero growth in kind.

The largest producers of servers in terms of revenue, data of Gartner

Speaking about drivers of growth of the server market, the vice president for the researches Gartner Jeffrey Hewitt pointed to "rather strong economies" and also to the "positive results" in the corporate sector and a segment of hyper scalable data centers reached thanks to the aspiration of business to implement more digital solutions.

The largest producers of servers in terms of supply rate, data of Gartner
«
As for perspectives for 2018, small growth will remain, and corporate users will implement the hybrid approach in relation to local options and public clouds, using each reference points in the field of server applications — Jeffrey Hewitt considers.
»

Gartner follows from the message that shipments of servers with processors on architecture of x86 increased almost by 9%, and revenues of producers from sales of such equipment jumped by 23.7%.

Alignment of forces among vendors only for the fourth quarter is given in a research. TAdviser studied quarterly statements of Gartner and summed up data on separate companies. According to calculations on the basis of these analysts, in 2017 delivered to Dell EMC more than 2 million servers that allowed the company to win first place in the overall ranking. On the second position Hewlett Packard Enterprise (HPE) from 1.8 million released devices was located. The greatest growth rates of income and shipments of servers are still shown by the Chinese Inspur Electronics.[7]

2016

The share of solutions x86 reached 99.7%

Mercury Research estimates a share of the servers using processor architecture of Intel x86 in the market at 99.7% according to the results of the second quarter 2016.

Record sales of HPC-systems

In April, 2017 the Hyperion Research analytical company which was a part of the IDC agency earlier published results of a research of the world market of servers for high-performance computing (HPC). Sales of this equipment grew to a record thanks to supercomputers.

In 2016 the volume of global market of HPC-systems reached $11.2 billion, having increased by 4.4% of rather previous year. The specified revenue appeared the biggest in the history of the market. The former maximum value is recorded in 2012 — $11.2 billion.

The data center using HPC-servers

Researchers say that the market of HPC-servers grew thanks to the systems of average and high levels which sales compensated recession in a segment of less expensive systems.

The largest growth was shown by category of supercomputers (products worth from $500 thousand and above) where sales jumped by 26.2% — from $3.2 billion in 2015 to $4 billion in the 2016th. Implementation of systems in the price range of $250-500 thousand rose by 18.2% to $2.3 billion.

Sales of the equipment which is offered at the price from 100 to 250 thousand dollars were reduced almost by 20% and made $3.1 billion. In a segment of workstations (the computer equipment to $100 thousand) there was a 7 percent recession to $1.7 billion[8]

«
HPC-servers are closely connected not only with scientific achievements, but also with industrial innovations and economic competitiveness. For this reason of the country and regions worldwide and also the enterprises and the universities of all sizes increase the investments into high-performance computing. Besides, the global race on achievement of eksaflopsny performance will stimulate growth in sales of supercomputers of the class high-end — the CEO of Hyperion Research Earl Joseph reported.
»

Recession of sales for 2.7% to $54 billion, HPE - earns most

On March 2, 2017 analysts of Gartner provided results of a research of global market of servers. Its volume slightly increased in kind, but was reduced in monetary. The market leader in pieces became Dell, the outstripped HPE.

In 2016 producers produced in total more than 11 million servers for the amount exceeding $54 billion. In the report it is noted that quantitative supplies of equipment rose by only 0.1%, and revenue of vendor decreased by 2.7%.

As the vice president for the researches Gartner Jeffrey Hewitt reported, several factors defined a picture in the market of servers in 2016. In particular, expansion of hyper scalable data centers (for example affected, that which are owned by Facebook and Google) that led to considerable updating of the equipment on these objects. Expenses of the companies on purchase of servers grew at slow rates as the organizations and the enterprises even more often use virtualization and cloud services, Hewitt noted.

The processor architecture of x86 remains the dominating server platform used in large data centers worldwide. The growing demand for the integrated systems (including hyper convergent solutions) which share, however, in all market of the infrastructure equipment remains small, also stimulated sales of x86 systems in 2016, reported in Gartner.

The largest producers of servers given to Gartner for the fourth quarters 2015 and 2016.

Alignment of forces among producers at the end of 2016 is not given in a research. Only provision of vendors according to the results of the fourth quarter is specified. In this period of Dell escaped on the first place on deliveries of servers with a 19.1 percent share. The HPE company which was in the lead before on volume to release of the equipment reduced its shipments by 19.4% therefore the market share decreased to 17.2%. At this HPE remained on the first place on sales returns of servers.[9]

2015

Record sales

On March 10, 2016 the International Data Corporation (IDC) analytical company published results of a research of the world market of servers. Its volume as experts found out, reached record value.

According to IDC, in 2015 total revenue of producers from sales of servers in the world made $55.1 billion that is 8% more, than the previous year. Deliveries of systems increased by 4.9% up to 9.7 million pieces that is the highest rate for all history of the market.

The world market of servers updated a record in 2015

In October-December, 2015 sale of servers increased by 5.2% year on year and made $15.3 billion. This quarter growth was the seventh in succession and turned out to be consequence of the proceeding equipment turnover cycle in the companies and expansions of data centers of cloud providers.

«
As the turnover cycle observed in 2015 came to an end, the attention in the market began to be displaced towards software-defined infrastructure and hybrid environments of management as the companies start transformation of the IT infrastructures and also prepare for demand in the next years for such IT solutions as Internet of Things and cognitive analytics — the analyst of IDC Cuba says to Kuba Stolarski. — In 2016 acceleration of growth rates of expansion of cloud infrastructure due to development of the operating business and start of new cloud data centers is expected worldwide.
»

Hewlett Packard Enterprise (HPE) at which revenue in the market in 2015 rose by 5.8% to $14.1 billion that corresponds to 25.6% in a total amount remained the largest producer of servers. The second place reserved Dell (17.5%), and the third — IBM (13%). The last continues to reduce sales of servers after sold a part of this business of Lenovo.

The Chinese vendor, in turn, thanks to this transaction actively strengthens the positions as server producer. In 2015 Lenovo gained $4.1 billion in the market that is 170% more, than the previous year. It allowed to outstrip Cisco which completed 2015 with a market share in the amount of 6.5% against 7.5% at Lenovo.[10]

By estimates of researchers of IDC, in 2015 98% of the released servers were based on processors with architecture of x86 which is advanced by Intel.

Every third server in the world is not necessary

About 10 million all physical servers in the world — that makes 30% of their total number — are in a "coma" status. It means that they do not process and do not issue any information within six months or bigger term, but continue to consume at the same time the electric power, follows from the report published in the summer of 2015 by consulting company Anthesis Group jointly with Stanford University[11].

Find not used servers by means of measurement of loading of central processors or memory it will not turn out — namely these methods are most popular in the companies, the report says. Therefore analysts used the special software which polls servers on availability of operational data — information for the sake of which processing the server works.

Both separate servers, and the servers serving for maintenance of virtual environments were among not used servers. The cost of this idle asset is $30 billion, proceeding from the assumption that the average cost of the server is equal to $3 thousand and also without the expense accounting on infrastructure and current costs on maintenance and service of servers.

If it was succeeded to switch-off all not used servers in the world, power saving would make 2.2 GW only from servers and about 1.8 more GW — from cooling and infrastructure.

Results of Anthesis matched other researches, including the researches Uptime Institute and McKinsey & Company according to which in the USA it is used only two - thirds of servers. The Anthesis company received the same digit, but for the whole world in general. Moreover, according to McKinsey, in business it is rare when loading of servers exceeds 6%.

2014: Growth by 3%

On March 3, 2015 the International Data Corporation (IDC) research company published analysis results of global market of servers. Its volume as experts found out, reached record value in what a big merit of China.[12]

According to estimates of IDC, in 2014 to the world market 9.2 million servers were produced that is 2.9% more, than the previous year. So large volume never was, experts note. In money the server market showed 2.3 percent growth — to $50.9 billion.

In October-December, 2014 sales of servers increased by 1.9% (to $14.5 billion), and this quarter rise was the third in a row. Analysts explain nine-months positive dynamics with the proceeding turnover cycle of a computer hardware in the companies and the growing investments into infrastructure from cloud providers.

Besides, an important role is played by the Chinese market of servers which volume reached the record level of $2 billion according to the results of the last three months 2014, having increased by 26.2% in comparison with the same period of the 2013th. Four largest vendors from Celestial Empire of Inspur, Huawei, Lenovo and Sugon increased server revenue more than half, said in the report of IDC.

HP remains the largest producer of servers on a global scale, however in 2014 the American company increased sales of the systems of everything by 0.8%, and the market share of vendor fell up to 26.2% from 26.6% the previous year.

File:Screenshot 2015-03-04 in 14.49.15.png

Positions of the largest producers of servers in 2013 and 2014

After HP there is her compatriot of IBM whose positions after sale of the solutions x86 direction began to weaken promptly. 2014 "the blue giant" finished with a 18.4 percent share whereas the previous year it was measured by 25.6%. In the fourth quarter the indicator of presence of IBM decreased to 13.7%, and the corporation conceded the second place of Dell.

The last in 2014 earned $9 billion from servers, having raised this income by 5.7% year on year. The five of the largest producers also included Cisco and Oracle which occupied 5.7% and 4.6% of the market respectively.

2012

The market of blades came to a standstill

According to data of Gartner Magic Quadrant for Blade Servers 2013[13], in 2011 the world market the blade servers reached a deadlock as the sales increase of other types of the server hardware was "kannibalizrovat" by that growth which suppliers of blades managed to reach earlier. In piece expression the share of blades in the world market of servers in 2012 made 12% that differs not in much from an indicator of 2011 – 13%, in terms of money – 21%.

Thus, in a segment a blade North actually nothing changed since 2011. On the contrary, the segment of multinodal servers in 2012 increased a share in the market from 7.8% to 15% - practically twice. The share of this segment in terms of money during the period from 2011 to 2012 also grew from 5.3% to 10%.

In a research it is said that the majority a blade servers and multinodal servers is delivered in x86 to architecture. Nevertheless, such vendors as HP, IBM and Oracle deliver the blades which are generally intended to users of Unix in the market and a не-х86. Such vendors as Supermicro, SeaMicro (it is purchased by AMD), Dell, Huawei and HP make low-power servers on Intel processors, AMD and ARM.

Experts of Gartner specify that as multinodal servers gradually take a segment of low loaded systems, and blades are usually used as a basis for FBI systems, even more often a blade servers are used also for complex applications, such as highly loaded systems, data warehouses, ERP and CRM.

Blades also well are suitable for in-memory databases. All this increased blocking of application of blades, multinodal and rack servers in different areas that forces to be present vendors at all specified segments to optimize workloads in each specific form factor. Gartner recommends to clients to require the proof of operation of servers at all scenarios of loading from the suppliers.

Magic quadrant for a blade servers

Gartner, 2013

As for vendors, there is also very interesting situation here. After in the market a blade servers long time HP and IBM dominated, since 2009 this market was entered by Cisco and was very quickly beaten out in leaders, gradually winning a market share from the specified companies. HP, IBM and Cisco on 2012 controlled 80% of the world market a blade servers in quantitative expression.

According to a magic quadrant of Gartner for April, 2013, a strong player in the market of blades is also Fujitsu. Among niche players Huawei, Oracle, Hitachi and Bull are designated, the SGI company is placed in a quadrant of visionaries.

Results of year: sales reduction for 1.9% to $51.3 billion

For all 2012 total revenue in the world market of deliveries of server products decreased by 1.9% in comparison with 2011 and was $51.3 billion. Supply rates also showed negative dynamics, having decreased in a year by 1.5% to an indicator in 8.1 million units.

In the research IDC it is mentioned that revenue indicators from Linux servers were positively affected by demand for the high-performance systems and deployment of cloud infrastructure. Revenue indicators from Linux servers grew by 12.7% in the fourth quarter 2012 in relation to the same period of 2011 and made $3 billion Linux servers now occupy a share in 20.4% in all total revenue of sales of servers (it is 1.7 higher percent than point, than in the fourth quarter 2011).

Installation of the Windows server also remains the popular solution at customers. Demand for the server systems based on Microsoft Windows, according to experts, continued to increase in the fourth quarter 2012. Total revenue from these server systems was $6.7 billion according to the results of the fourth quarter that means growth by 3.3% in comparison with the same period of last year. Revenue share from sales of Windows - servers makes 45.8% of the total amount of revenue in the market of servers according to the results of the fourth quarter 2012 and it is similar to the share occupied in the fourth quarter 2011.

In turn, decline in income at Unix servers ($2.6 billion according to the results of the fourth quarter 2012) was 24.1% when comparing with the same period of last year. Revenue share from sales of Unix servers makes 17.6% of the total amount of revenue in the market of servers according to the results of the considered quarter.

According to IDC concerning distribution of positions of the main players in the universal market of servers, according to the results of the fourth quarter 2012, is in the lead in "top-5" vendor of IBM. Revenue at this producer in reporting period made $5.343 billion, and the occupied share is estimated at 36.5%. For all 2012 revenue of IBM made $15.748 billion, and a share in the market – 30.7%.

The second place is taken by HP with an indicator on revenue of $3.626 billion and shares of 24.8% in the fourth quarter 2012. Annual figures of this producer – $14.149 billion and a market share in 27.6%.

The third place is held by Dell which revenue for the fourth quarter made $2.218 billion, and the share is estimated at 15.1%. For all 2012 of Dell showed an indicator of $8.165 billion on revenue and 15.9% on a share in the market.

Further in rating were located with Oracle ($602 million on revenue in the fourth quarter 2012 and 4.1% a market share), Fujitsu ($501 million on revenue in the fourth quarter 2012 and 3.4% a market share) and Cisco ($480 million on revenue in the fourth quarter 2012 and 3.3% a market share).

According to the results of all 2012 indicators of Oracle were $2.660 billion on revenue and 5.2% a market share. Indicators of Fujitsu - $2.070 billion on revenue and 4% a market share. Cisco indicators - $1.610 billion on revenue and 3.1% a market share.

The fourth quarter

According to the results of the fourth quarter 2012 the universal total revenue of producers in the market of servers grew by 3.1% in a year and reached an indicator in $14.6 billion. Such data are provided by experts of IDC company. Positive indicators of the fourth quarter on revenue are observed, according to experts, for the first time in five last quarters. At the same time, on supply rates the universal market of servers in the fourth quarter lowered the indicators by 3.9% to a mark of 2.1 million units.

Third quarter

According to Gartner Gartner Says the Worldwide Server Shipments Grew 3.6 Percent[14], in the third quarter world deliveries of servers grew 2012 by 3.6% in annual terms up to 2.458 million pieces of equipment whereas revenue of vendors decreased by 2.8% to $12.6 billion in comparison with the third quarter 2011.

In IDC Worldwide Server Market Revenues Decline company[15] point to even big falling of revenue of producers in annual terms – for 4% to $12.2 billion whereas, according to the same company, deliveries in piece expression grew by 0.6% in a year and made in the third quarter 2012 2.1 million units. Obviously, such difference in results of calculations of Gartner and IDC is caused by differences of techniques of assessment which apply both research companies.

As analysts of Gartner specify, among regions of the world only in North America and the Pacific Rim of sale of vendors in a cash equivalent were positive: they increased by 1.1% and 0.7% respectively. And in North America also the maximum gain of supply rates of servers is recorded: it increased by 7.4% in piece expression. IDC point to a positive gain also in Asia and the countries of the Pacific Ocean, separately noting progress of the Chinese market.

In EMEA region of delivery of servers reached nearly 590 thousand units in the third quarter 2012 that is 2.8% lower, than the previous year. Revenue of producers from sale of the server hardware in this region decreased by 9% in annual comparison to $3 billion, according to Gartner.

At the first five of server vendors of case also went not really: four companies showed negative revenue development which increased only at Dell – by 10.3% in annual comparison. In comparison with results year prescription in general positions of the companies in the market did not change, in the first five of a share of suppliers were distributed as follows in decreasing order: IBM (27.6%), HP (26.4%), Dell (16.7%), Oracle (4.7%) and Fujitsu (3.9%). 20.7% of the market fell to the share of other vendors. Calculations of IDC contain similar calculations: top five looks similarly.

Shares of vendors in the world market of servers on total revenue, the 3rd quarter 2012


IDC, 2012

It is interesting that, according to Gartner if to judge by supply rate, but not on revenue, positions of vendors in the world market of servers differ and look as follows: HP (25.8%), Dell (23%), IBM (11.4%), Fujitsu (3.1%) and Cisco (2.3%), another 34.4% is the share of other companies.

The second quarter

Revenue of producers in the world market of servers decreased by 4.8% one year prior to $12.6 billion in the second quarter 2012, according to IDC Worldwide Server Market Revenues Decline[16]. It is already the third quarter when in annual comparison results of the market are negative. In piece expression of delivery of servers in the second quarter in comparison with the same period of 2011 decreased by 3.6% up to 2 million units, this first such decrease in comparison in a year for the last three years.

All segments of the server market plunged into a depression at the same time: the volume segment of systems in annual terms decreased by 2.5%, a midrange and high-end segment of systems for 11.2% and 7.6% respectively.

Top-5 server vendors in the world market on total revenue for the 2nd quarter 2012, $ one million


IDC, 2012

According to IDC, HP and IBM divided the first line in the rating of the largest world server suppliers as the difference between their shares (29.6% and 29.2% respectively) is comparable to a statistical error. On the third place on revenue of Dell (16%), on the fourth Oracle (6%), on the fifth Fujitsu (3.9%). Another 15.3% of market size in the second quarter were the share 2012 of others the supplier.

Technology trends:

  • The volume of income from implementation of Linux of servers grew by 1.7% in annual terms to $2.8 billion, 22.1% of all turnover of the market were the share of them.

  • The segment not x86 of servers, including architecture of RISC, EPIC (on the basis of Itanium) and CISC decreased in volume by 19.4% one year prior to $3.9 billion. A segment share in market size – 30.6%. This quarter became the fourth negative on the account.

  • Proceeds from sales of x86 of servers grew by 3.5% to $8.7 billion even in spite of the fact that deliveries in quantitative expression were reduced by 0.6% to 1.9 million units. This first decrease in supply rates of servers of such architecture from the third quarter 2009.

  • The Segment of blades continues to show steady growth: revenue of producers in this segment grew by 6.3%, and deliveries – for 4.1% in comparison with the second quarter 2011. In general the segment of blades, both x86, and EPIC and RISC, made of $2.1 billion or 16.9% of market size in general in the second quarter 2012.

First quarter

According to IDC, revenue of producers in the world server market in the first decreased quarter 2012 by 2.4% in comparison with the same period to $11.8 billion the previous year. It is the second unsuccessful quarter in comparison with last year, analysts specify. Despite a failure in terms of money, in piece expression of delivery of servers in the first quarter 2012 increased by 2.7% in comparison with 2011, according to IDC.

Gartner synchronously with IDC fixes in the first quarter 2012 insignificant increase in supply rates (for 1.5%) in the world server market and at the same time decrease in profit of producers, but less considerable, than at IDC – for 1.8%.

Among difficulties of the first quarter 2012 of IDC selects decrease in demand for about 10-11% for midrange and high-end of a system, lack of initiatives from the vendors occupied with preparation of entry into the market of key offers of x86 of architecture and also low demand for the server hardware in the Pacific Rim, first of all China.

As for other regions, according to Gartner, the maximum growth rate of deliveries of servers is recorded in the first quarter 2012 in Eastern Europe, here they increased by 16%. On revenue gain in this period Japan (+10.6%) was in the lead.

Top5 of producers of servers in the first quarter 2012 on the total revenue, $млн

Source: IDC, May, 2012

In the first quarter 2012 of a position of key producers of servers in the world market in comparison with the first quarter 2012 significantly did not change: first place was won by HP company (29.3% of the market), behind it with a small gap of IBM (27.3%), Dell (15.6%), the fourth place was separated by Oracle (6.1%) and Fujitsu (5.2%). At the same time, apparently from the table is higher, at four of five large vendors (except Fujitsu) revenue in annual terms decreased rather seriously.

It is interesting that Gartner recognizes HP by vendor No. 1 in the world market on supply rate, but not on the total revenue, placing in the second case on the first place of IBM. Anyway, shares of both players are very close in terms of money – 28.1% and 27.8% of the market. Whereas HP wins first place from 29.2% in piece expression, and IBM only the third from 11.4%.

Revenue of suppliers of servers in the first quarter 2012, $ one million

Source: Gartner, May, 2012

Shares of suppliers of servers in the first quarter 2012 on supply rate

Source: Gartner, May, 2012

As for market segments, the segment not x86 of devices, including servers on RISC, EPIC (Itanium) and CISC processors, decreased in volume by 16.1% in annual terms to $3.4 billion. This segment made 28.5% of the total amount of the market. At the same time revenue of x86 segment of servers increased by 4.5% to $8.4 billion, and in piece expression the segment grew by 3.2% up to 1.9 million servers. Blades also showed growth by 7.3% on total revenue and for 4.8% on supply rates in comparison with the beginning of 2011, according to IDC.

2011

4 quarters and results of year

Market size


According to IDC company, the volume of the world market of servers in 2011 grew by 5.8% to $52.3 billion, and world deliveries of servers in 2011 increased by 4.2% to 8.3 million units. In the fourth, final quarter 2011, revenue of vendors from sales of the North in the world market for the first time in two years decreased by 7.2% in annual terms to $14.2 billion.

Gartner estimates the volume of the world market of servers in 2011 at $52.79 billion (growth in comparison with 2010 was 7.9%. This analytical company also estimates deliveries slightly above, than IDC: in 2011 9.52 million units of server products were supplied to the market that for 7%, than in general for 2010. In the fourth quarter 2011 of Gartner also recorded a serious failure of revenue – for 5.4% to $13.9 billion, in piece expression the market after all grew by 4.5% up to 2.5 million units. According to Jeffrey Hewitt, the vice president of Gartner for researches, the shortage of stocks of hard drives (HDD) as a result of a flood in Thailand in October, 2011 became the reason of failure in deliveries, and many vendors could not meet demand of the last weeks 2011. "We expect continuation of a negative impact on the market from deliveries of disks in the first quarter 2012", - the analyst emphasized.

Leading vendors


In the fourth quarter 2011 of a position of megavendors in the world server market, proceeding from dollar revenue, were distributed as follows in decreasing order of a share: IBM, HP, Dell, Oracle, Fujitsu. In it opinions of analysts of Gartner and IDC, apart from some discrepancies in estimates of a share of the specific companies meet. In general, according to IDC, 86.2% of the world server market, according to Gartner – 84.2% fell to the share of the five of the largest suppliers in the 4th quarter 2011.

Data on shares of vendors in general for 2011 are provided only in the report of Gartner. According to them, in terms of money the five of the leading server suppliers was made also by IBM (30.5%), HP (29%), Dell (14.7%), Oracle (6.1%) and Fujitsu (4.8%) However in piece expression the situation looks cardinally differently: HP (29.5%), Dell (22.2%), IBM (12.2%), Fujitsu (3.1%), Lenovo (1.7%).

Segments of the market


On a form factor

According to IDC, for the last three months 2011 decrease in profit happened in all three largest segments of the market for the first time since 2009: most of all sales of hi-end of systems – decreased by 18.4% one quarter prior to $3.7 billion.

Growth of the largest x86 segment of servers slowed down in the 4th quarter 2011 so revenue of vendors in this segment for the last three quarters 2011 decreased by 1.7% to $9.1 billion, deliveries, on the contrary, grew by 2.9% up to 2.1 million units.

In a segment a blade servers revenue of producers in the 4th quarter 2011 grew by 8.3% in annual terms, and deliveries – for 1.7% in piece expression. In total on a segment a blade servers, including servers of x86 of architecture, EPIC and RISC of architecture, $2.3 billion in the 4th quarter 2011 were necessary that makes 16.1% of all market.

In November, 2011 IDC also provided the new segment of the market of servers under the name Hyper-Scale Servers afterwards renamed into Density Optimized Servers (literally – "completely optimized servers"). Such servers are created for large DPCs where workloads are distributed and parallelized. Construction of such servers considers three factors – performance, energy efficiency and density. In the 4th quarter 2011 the segment of such servers in annual terms grew by 33.8% to $458 million, and deliveries grew by 51.5% up to 132.8 thousand units. Now 3.2% of the server market in terms of money and 6.1% in piece expression are the share of this segment.

On a software platform

Demand for the Linux servers in 2011 became stronger for the account growth of the market of high-performance computing (HPC) and deployment of cloud infrastructures. Says increase in revenue of vendors in this segment (it reached $2.6 billion) for 2.2% about it year on year in the fourth quarter 2011. Sales returns of Linux servers made 18.4% of turnover of the world server market that is 1.7% higher in comparison with the fourth quarter 2010.

Demand for the Microsoft Windows servers gradually decreased in the fourth quarter 2011, and income from sale of servers in this segment decreased by 1.5% year on year. Quarter income in $6.5 billion from sales of the Windows servers is 45.8% of total sales of vendors on server the market that on 2.6: above, than in the same period of 2010.

Sales returns of Unix servers decreased by 10.7% year on year to $3.4 billion, having made 24.2% from turnovers of the world server market. The market of the Unix servers did not return to pre-crisis levels, without regard to change of parameters of dynamics of the market.

3 quarter

Amounts of world deliveries of servers, according to Gartner research company, in the third quarter 2011 grew by 7.2% year on year while revenue grew by 5.2%.

Jeffrey Hewitt, the vice president of Gartner for researches, stated growth of world deliveries of servers in the third quarter the current year, having noted considerable fluctuations in regions. "All regions showed growth of supply rate and revenues of vendors, except for Western Europe which was noted by reduction of income for 4.9% for the reporting period. At the same time the Pacific Rim showed the most significant growth in supply rates, showing increase by 23.9%. And in Eastern Europe the highest revenue growth of suppliers - 27.4% in a quarter", - the analyst emphasized.

Servers on x86 platform shot ahead. The supply rate of this equipment grew by 7.6%, at the same time growing in income for 9.3%. Western Europe and the United States could not show growth of sales amount of servers of it type, because of rather stronger results of the third quarter 2010. World deliveries of Unix servers RISC/Itanium decreased by 6.8%, but revenue of vendors increased by 3.5% in comparison with similar quarter of last year. Servers of other category, first of all mainframes, showed decrease by 6.9%.

The leading five of world suppliers increased income in the third of quarter 2011. Exception of steel of HP and Oracle: By HP it was rolled away for 3.6% year on year, and Oracle refrained from losses. On the level of income the world market of servers was headed by IBM (see table 1): the company gained a little more than $3.8 billion income at a cumulative market share of 29.7% in the third quarter 2011. Year on year the share of the company decreased by 0.5%. The most part of revenue growth of IBM was provided by sales of products of the line of Power Systems, with some participation of System X.

According to Gartner estimates, the rating of the leading vendors looks as follows: at the head heads the list of IBM with revenue $3.846 billion and market shares of 29.7%, it is followed by HP with $3.802 billion and shares in 29.3%, further – Dell, with indicators of $1.903 billion and 14.7%, Oracle holds the fourth place with income of $0.763 billion and shares of 5.9%. On the fifth position – Fujitsu with income of $0.603 billion and market shares of 4.7%.

Table 1. Assessment of income of the leading suppliers in 3 sq. 2011.

Vendor

3Q11



Income ($US)

Market share in 3Q11 (%)

3Q10



Income ($US)

Market share in 3Q10 (%)

Growth 3Q10-3Q11 (%)

IBM

3,846,807,802

29.7

3,717,419,666

30.2

3.5

HP

3,802,440,047

29.3

3,942,615,230

32.0

-3.6

Dell

1,903,221,687

14.7

1,789,631,319

14.5

6.3

Oracle

763,610,285

5.9

763,964,420

6.2

0.0

Fujitsu

603,044,868

4.7

582,244,543

4.7

3.6

Other vendors

2,048,599,229

15.8

1,533,530,740

12.4

33.6

In total

12,967,723,917

100.0

12,329,405,918

100.0

5.2

Source: Gartner (November, 2011)

HP remains the world leader in supply rates of servers in the third quarter 2011 (see table 2), despite decrease in deliveries to 3.1% in comparison with the same period of last year. This decrease, was generally caused by falling of the ProLiant brand. The world share of deliveries of HP servers made 29.2% at decrease by 3.1% in comparison with the same period of 2010. The company delivered in the third quarter 693.265 items of equipment.

After HP, in the second line of rating took place Dell with an amount of 517.867 units and a share of 21.8% that is 3.2% higher in comparison with the third quarter of previous year. Stands IBM with indicators of 287.507 units and 12.1% behind it. Fujitsu on the third position with a supply rate of 79.072 units and a share in 3.3%. Lenovo closes the leading five of rating on supply rate - 46.638 units and a share of 2.0%.

Other vendors occupied a market share in 31.5% with an amount of shipment of the equipment to 748.633 pieces. Their market share in the third quarter made 2010 27.4% at the supply rates of 607.641 pieces.

Table 2. Assessment of supply rate of servers in 3 sq. 2011.

Vendor

3Q11



Deliveries

Market share 3Q11 (%)

3Q10



Deliveries

Market share in 3Q10 (%)

Growth 3Q10-3Q11 (%)

HP

693,265

29.2

715,481

32.3

-3.1

Dell

517,867

21.8

501,593

22.7

3.2

IBM

287,507

12.1

287,574

13.0

0.0

Fujitsu

79,072

3.3

75,479

3.4

4.8

Lenovo

46,638

2.0

26,346

1.2

77.0

Other vendors

748,633

31.5

607,641

27.4

23.2

In total

2,372,982

100.0

2,214,115

100.0

7.2



Source: Gartner (November, 2011)

In terms of a form factor of servers, deliveries a blade servers grew by 3.3%, and revenue for 7.6% in a quarter. This quarter rise in deliveries of servers of a rack form factor to 8.2%, in income for 6.3% is also observed.

2010

The second quarter

According to Gartner, in the second quarter 2010 of shipment in the world market of servers grew by 27.1%, at the same time the volume of income increased by 14.3%. Most of all the market of Eastern Europe grew (by 46.9% on shipments and for 26.2% on revenue).

In the second quarter the HP company which volume of income was 3.5 billion dollars, and a market share - 32% became the leader of the world market of servers in profit. The second place at IBM (27.7%), Dell and Oracle from 16.3% and 8.5% respectively follow further. Closes top five of Fujitsu from shares in 3.2%. Except HP, for the reporting period growth was shown also by Dell and Fujitsu.

First quarter

After partly successful 4th quarter 2009 in the 1st quarter 2010 the world market of servers showed positive dynamics both on supply rates, and on total revenue. In total from January to March, 2010 2.12 million servers for the amount of $10.75 billion were delivered. In comparison with the same period of last year deliveries increased by 23%, revenue – for 6%, reports Gartner.

According to analysts, despite return to growth on a global scale, the market did not reach historically record levels of 2008. As for regional results, they left rather mixed. To a large extent analysts hoped for emerging economies (including the Pacific Rim), however they showed slow growth that cannot be told about the developed countries, such as the USA in which sales of servers exceeded forecasts.

Sales of the systems on architecture of x86 which became a pacing factor of growth rose by 25.3% in quantitative and for 32.1% in terms of money. Sales of systems based on RISC architecture and systems based on the Intel processors Itanium, on the contrary, were reduced, and it is essential, – for 28.5% in quantitative and 26.9% in terms of money. Revenue from sale of the systems of other types to which mainframes generally belong was reduced by 15.1%. A blade servers showed the highest growth among all other form factors: for 23.7% in quantitative and 40.7% in terms of money.

In a regional section the largest growth of deliveries was shown by the USA (+28.6%) whereas the largest growth on revenue of vendors – Latin America (+27.9%). All other regions also showed positive dynamics, except for Japan which server market was reduced by 0.7% in terms of money.

The Hewlett-Packard company which displaced IBM corporation on the second grinding became the largest producer of servers on total revenue. According to the results of the 1st quarter 2010 revenue of HP reached $3.39 billion, the company occupied 31.5% of the world market, on 2.7 percent points it is more in comparison with the same period of last year. Revenue of IBM was reduced by 2.1% to $3.05 billion. The company occupied 28.4% of the market in terms of money. Dell and Fujitsu, also as well as HP, showed positive dynamics.

World market of servers: revenue of suppliers (in dollars)

Company Revenue in the 1st apartment 2010 A market share in the 1st apartment 2010 Revenue in the 1st apartment 2009 A market share in the 1st apartment 2009 Growth year-on-year,  %
HP 3'389'508'530 31,5 2'923'706'928 28,8 15,9
IBM 3'052'091'123 28,4 3'116'339'359 30,7 -2,1
Dell 1'673'579'438 15,6 1'235'116'170 12,2 35,5
Fujitsu 645'299'697 6,0 598'529'005 5,9 7,8
Oracle 597'935'146 5,6 975'540'776 9,6 -38,7
Others 1'396'332'908 13,0 1'295'026'317 12,8 7,8
In total 10'754'746'843 100,0 10'144'258'554 100,0 6,0

Source: Gartner

On supply rates also took the first place HP, as well as last quarter. In comparison year-on-year deliveries of the company increased by 26.6% mainly thanks to increase in demand for ProLiant line servers. Positive dynamics was also shown by Dell, IBM and Fujitsu which were at the second, third and fourth places respectively. The Oracle corporation which absorbed Sun Microsystems took the fifth place.

World market of servers: supply rates (piece)

Company Deliveries in the 1st apartment 2010 A market share in the 1st apartment 2010 Deliveries in the 1st apartment 2009 A market share in the 1st apartment 2009 Growth year-on-year,  %
HP 672'094 31,8 530'849 30,9 26,6
Dell 510'452 24,1 382'385 22,2 33,5
IBM 268'010 12,7 230'984 13,4 16,0
Fujitsu 77'613 3,7 59'029 3,4 31,5
Oracle 42'528 2,0 60'294 3,5 -29,5
Others 544'898 25,8 456'517 26,5 19,4
In total 2'115'595 100,0 1'720'059 100,0 23,0

Source: Gartner


Analysts do not specify the forecast for 2010 By the last assessment, in the current year will grow up both world supply rates, and revenue of producers. In 2009, we will remind, the world market of servers sank for 16.6% in quantitative and for 18.3% in terms of money.

2008: Sales reduction in the 4th apartment for 14% to $13.5 billion

According to these IDC, world sales of servers in the 4th quarter 2008 fell under pressure of an economic crisis. Profits of vendors in this market, respectively, decreased by 14% in comparison with last year to $13.5 billion.

The fourth quarter appeared second in a row quarter with negative dynamics. In this situation worst of all the Windows servers segment which lost about 10% for the last quarter feels. Losses of the Unix servers segment were 6.2%, and Linux servers - 7%.

The reasons of such state of affairs are obvious: in the conditions of financial crisis business began to spend less money for updating and improvement the IT infrastructures, and, first of all, it concerned purchase of the new equipment including server.

2007

By estimates of analysts Gartner, growth of the world market of servers did not exceed 3.8% earlier. Sales volume at the same time was $54.8 billion. In kind market size reached 8.8 million servers that is 7.4% more, than the previous year. Thus, the average cost of the sold server fell a little. It should be noted that market leaders remained the same is IBM and HP. Sales volume IBM was about $17 billion that allowed the company to reserve the first place in the rating of the largest suppliers of such equipment. Nevertheless growth in comparison with 2006 equaled only 0.6%, and servers IBM demand even fell to the System I and System Z families. In the second place in the world ranking is HP which sold 2.6 million servers for the total amount of $15.5 billion that is 8.8% more than indicators of last year. Analysts note that so far HP is in the second place both on revenue, and on volumes, however percentage sales growth and profits of HP considerably exceeds indicators of IBM and if HP saves growth rates, then has every chance to become the world leader. The third and fourth places are shared among themselves by the companies Dell (12.1%) and Sun Microsystems (10.2%). At the same time sales growth at the first made 13.5% whereas at the second — only 0.9%. The Fujitsu company -Siemens from market shares in 5.4% closes the five of the largest producers of the server systems. Thus, several years in a row share of five largest players in this market makes more than 85% and constantly grows. Presence of other producers in the market becomes less noticeable. Servers of initial level (at the cost up to $25 thousand) remain the main engine of the market — sales in this sector grew by 8.1% while deliveries of servers of the middle and senior class ($500 thousand are more expensive) decreased by 2.2 and 14.5% respectively. By data IDC, drop in sales in the sector of the systems of the senior class was the most considerable in five last years.

Servers (market of Russia)

Servers (market of Russia) Servers (market of EMEA)

White box servers

Main article: White box servers

Notes

  1. Worldwide Server Forecast, 2020-2024 - Data Center Industry to Grow of 3% YoY in 2020 Despite COVID-19 - ResearchAndMarkets.com
  2. Gartner Says Worldwide Server Revenue Grew of 5.1% in the Fourth Quarter of 2019, While Shipments Increased 11.7 of %
  3. Yearly Server Shipment Remains Identical from 2018 to 2019, with Data Center Demands Driving Market Resurgence, Says TrendForce
  4. Dell, HPE, Lenovo Lead as Cloud Server Market Surges to a of US$86 Billion in 2018
  5. Gartner Says Worldwide Server Revenue Grew 17.8 Percent in the Fourth Quarter of 2018, While Shipments Increased 8.5 Percent
  6. Global Server Shipments to Grow by of 5% YoY in 2018, but Growth May Slow Down in 1H19, Says TrendForce
  7. Gartner Says Worldwide Server Revenue Grew 25.7 Percent in the Fourth Quarter of 2017, While Shipments Increased 8.8 Percent
  8. Supercomputer Sales Drove 2016 of HPC Market Up to Record of $11.2 Billion
  9. Gartner Says Worldwide Server Revenue Declined 1.9 Percent in the Fourth Quarter of 2016, While Shipments Fell 0.6 Percent
  10. Worldwide Server Market Revenues Increase of 5.2% in the Fourth Quarter as Demand in China Once Again Drives the Market Forward, According to IDC
  11. of CNews: Every third server in the world is not necessary
  12. Worldwide Server Market Revenues Increase of 1.9% in the Fourth Quarter as Demand in China Once Again Drives the Market Forward, According to IDC
  13. [1]
  14. ; Revenue Declined 2.8 Percent in the Third Quarter of 2012
  15. of 4.0% in Third Quarter as Market Demand Remained Soft, According to IDC
  16. of 4.8% in Second Quarter as Market Demand Softens, According to IDC