Nov 30, 2009 (09:11 AM EST)
Gartner Sees Stabilization In Server Market

Read the Original Article at InformationWeek

Worldwide server shipments and revenue in the third quarter increased significantly from the previous quarter, an indication that the recession-ravaged market is stabilizing, a research firm said Monday.

Shipments rose 13.8% from the second quarter to 1.9 million units, while revenue grew by 10.2% to $10.7 billion. The increase "suggests that the market as a whole is showing signs of stabilization as we move toward the end of 2009," Gartner analyst Jeffrey Hewitt said in a statement.

Nevertheless, comparing the third quarter with the same period a year ago showed how far the market had fallen during the economic recession that forced many businesses to delay computer purchases. On a year-to-year basis, shipments were down 17.1% and revenue fell 15.5%.

IBM led the market in revenue with a 31.7% share, followed by Hewlett-Packard with 30.2%. Rounding out the top five were Dell, 13.4%; Sun Microsystems, 7.4%; and Fujitsu, 5.2%.

With the exception of Dell, all the other top five vendors saw double-digit declines in revenue year-to-year. Sequentially, however, only Sun Microsystems saw a decline.

In server shipments, HP led with a 32.1% share, followed by Dell, 22.8%. Rounding out the top five were IBM, 12.8%; Fujitsu, 3.5%; and Sun Microsystems, 2.6%. All five vendors saw shipments fall year-to-year. Compared to the second quarter, however, all the computer makers saw an increase in shipments.

In the second quarter, worldwide server shipments fell 28% year-to-year, as revenue dropped 29%. At the time, Hewitt said the market remained "constrained on a worldwide level," as a result of the economic downturn.