Server market showing signs of Stabilisation

08/12/2009
Worldwide server shipments continued to decline in the third quarter, but at a slower pace than prior periods in 2009, according to the latest report from research firm Gartner, Inc. Shipments were down 17.1 percent in the third quarter compared to the same period last year, while worldwide server revenue for the same period declined 15.5 percent, Gartner said. That's a significant improvement from the second quarter, when server shipments dropped 28 percent year-on-year and revenues were down nearly 30 percent; in the first quarter of 2009 server activity experienced record decreases. Worldwide servers shipments reached 1.9 million units during the quarter with revenues totaling $10.7 billion. “It is important to put the yearly declines into perspective,” said Jeffrey Hewitt, research vice president at Gartner. “Looking at the third quarter results from the sequential perspective, they showed an increase of 13.8 percent in shipments and 10.2 percent in revenues when compared to the second quarter of this year. That suggests that the market as a whole is showing signs of stabilization as we move toward the end of 2009.” In server shipments, Hewlett-Packard retained its worldwide server shipment lead, as its market share reached 32.1 percent in the third quarter of 2009. Dell maintained the No. 2 ranking as its share totaled 22.8 percent. HP's shipment performance was driven primarily by its ProLiant brands. While the global server providers all posted year-on-year shipment declines for the quarter, all of the vendors experienced sequential shipment increases for the period.

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