According to research firms IDC and Gartner, revenue in the worldwide server market increased between 15.3%-16.4% percent year over year to $15.0 billion in the fourth quarter of 2010 (4Q10). This was the highest quarterly revenue in three years and the fourth consecutive quarter with improving year-over-year revenue growth as the market continued to accelerate throughout the calendar year of 2010.
“The 2010 growth was a combination of pent-up demand and the replacement cycle”, said Jeffrey Hewitt, Research Vice President at Gartner.
Gartner released their worldwide server market research findings on Feb. 24 2011. Days later, IDC came out with their 4Q 2010 worldwide server market revenue report on Feb. 28, 2011. Both reports were very consistent in their findings.
The ‘Big Three’ Server Vendors
IBM held the top position in the worldwide server systems market with 35.5%-37.4% market share in factory revenue for 4Q10, as revenue increased 21.9%-26.4% year over year. IBM had strong improvement in demand for its System z mainframe systems and continued demand for x86-based System x servers in the quarter.
HP came in second with 29.9%-30.4% share for the quarter as revenue increased 12.8%-13.2% percent compared to 4Q09. HP was helped by continued demand for its x86-based ProLiant servers.
Dell maintained third place with 12.6%-13.1% revenue market share in 4Q10. Dell experienced 26.4%-26.8% revenue growth compared with 4Q09 due to strength in demand from SMB, enterprise, and public sector customers.
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Below is a full breakdown of the state of the worldwide server market for the fourth quarter of 2010 and all of 2010, as compiled by IDC and Gartner
4Q10 Worldwide Server Market Share
Notable highlights:
- Worldwide server revenue grew by more than 15% in 4Q10
- Dell and IBM had the largest server revenue growth by around 26% in 4Q10
- IBM handily claimed the server market share lead in 4Q10
- HP lead the blade server market, with a 53.4% revenue share in 4Q10
Gartner: Worldwide Server Vendor Revenue Estimates, 4Q 2010 (U.S. Dollars)
Company
4Q10Revenue
4Q10 Market Share (%)
4Q09Revenue
4Q09 Market Share (%)
4Q09-4Q10 Growth (%)
IBM
5,213,930,594
35.5
4,125,145,125
32.7
26.4
HP
4,457,791,867
30.4
3,951,339,524
31.3
12.8
Dell
1,920,161,049
13.1
1,519,699,047
12.1
26.4
Oracle
805,582,264
5.5
960,830,493
7.6
-16.2
Fujitsu
560,391,957
3.8
563,384,642
4.5
-0.5
Other Vendors
1,720,448,653
11.7
1,486,168,259
11.8
15.8
Total
14,678,306,384
100.0
12,606,567,089
100.0
16.4
Source: Gartner (February 2011)
IDC: Worldwide Server Vendor Revenue Estimates, 4Q 2010 (Revenues are in Millions)
Vendor
4Q10 Revenue
Market Share
4Q09 Revenue
Market Share
Q410/Q409 Revenue Growth
1. IBM
$5,592
37.4%
$4,587
35.4%
21.9%
2. HP
$4,470
29.9%
$3,950
30.4%
13.2%
3. Dell
$1,887
12.6%
$1,489
11.5%
26.8%
4. Oracle
$883
5.9%
$1,032
8.0%
-14.4%
5. Fujitsu
$541
3.6%
$597
4.6%
-9.4%
Others
$1,586
10.6%
$1,321
10.2%
20.1%
All Vendors
$14,960
100%
$12,975
100%
15.3%
Source: IDC (February 2011)
2010 Worldwide Server Market Share
Notable highlights:
- Worldwide server revenue grew by more than 11% in 2010
- The Big Three server vendors, IBM, HP, and Dell, earned around 75% of worldwide server revenue of $48 billion
- HP and IBM remained in a virtual tie
- Oracle saw its server revenue decline by 14.0%-17.7% in 2010
Gartner: Worldwide Server Vendor Revenue Estimates, 2010 (U.S. Dollars)
Company
2010Revenue
2010 Market Share (%)
2009Revenue
2009 Market Share (%)
2009-2010 Growth (%)
HP
15,332,765,040
31.4
12,892,126,551
29.9
18.9
IBM
15,045,308,591
30.8
13,771,714,540
32.0
9.2
Dell
7,187,356,464
14.7
5,472,746,063
12.7
31.3
Oracle
3,095,981,831
6.3
3,762,609,892
8.7
-17.7
Fujitsu
2,141,541,849
4.4
2,037,072,203
4.7
5.1
Other Vendors
5,990,286,849
12.3
5,149,979,775
12.0
16.3
Total
48,793,240,624
100.0
43,086,249,024
100.0
13.2
Source: Gartner (February 2011)
IDC: Worldwide Server Vendor Revenue Estimates, 2010 (Revenues are in Millions)
