Server revenue in Europe is on a downwards spiral

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Server revenue in Europe is on a downwards spiral

Cliff Saran

Server revenue in Europe is on a downward spiral, according to analyst Gartner, and at its lowest level in 15 years.

Commenting on the latest server shipment figures, Adrian O’Connell, research director at Gartner, said: "The 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. Server revenue across EMEA is at its lowest level for over 15 years which underlines the increasing contraction of the server market."

41178_HP-server.jpg

Gartner’s worldwide server shipments market share report found that both Western Europe and Eastern Europe declined in revenue by 4.8% and 13% respectively.

Jeffrey Hewitt, research vice-president at Gartner, said: “x86 servers maintained low levels of growth at 2.1% in units year-on-year and 4.4 per cent in revenue. RISC/Itanium Unix servers continued to decline at 4.5% and 31% in vendor revenue compared to the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed an increase of 7.8%."

HP and Cisco were the only vendors in the top five to have revenue increases in the third quarter of 2013.

Worldwide revenue estimates for server suppliers in third quarter of 2013 in US Dollars

Company

3Q13

Revenue

3Q13 Market Share (%)

3Q12

Revenue

3Q12 Market Share (%)

3Q13-3Q12 Growth (%)

HP

3,404,811,159

27.6

3,330,804,391

26.4

2.2

IBM

2,821,114,540

22.9

3,479,454,267

27.6

-18.9

Dell

2,025,411,030

16.4

2,099,469,317

16.7

-3.5

Cisco

599,300,000

4.9

419,900,000

3.3

42.7

Oracle

500,438,000

4.1

592,040,000

4.7

-15.5

Others

2,989,616,696

24.2

2,684,112,837

21.3

11.4

Total

12,340,691,425

100.0

12,605,780,812

100.0

-2.1

Source: Gartner (December 2013)

In terms of supplier performances, three suppliers in the top five ranking showed a revenue decline in the third quarter of 2013, according to Gartner.

HP maintained its lead in terms of overall revenue, delivering a revenue increase of 1.1%. Second-ranked IBM saw its revenue decline 19.2% as the positive effects of its mainframe refresh diminished. Fourth-ranked Fujitsu was among the three suppliers in the top five to see a revenue decline, at 1.5%. Cisco, ranked in the number six, closed the gap with fifth-ranked Oracle in the third quarter of 2013, with less than 1% market share difference between the two vendors.


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