IBM and HP top EMEA server standings

First quarter EMEA server shipment and revenue figures from the numbercrunchers at IDC put IBM and HP neck and neck in the race for top spot. Big Blue picked up 30.9% market share with HP grabbing 30.5% as the total market value hit US$4bn and unit shipments climbed 13% year-on-year to 520,000.

  • E-Mail
By  Stuart Wilson Published  May 28, 2005

First quarter Europe, Middle East and Africa (EMEA) server shipment and revenue figures from the numbercrunchers at IDC put IBM and HP neck and neck in the race for top spot. Big Blue picked up 30.9% market with HP grabbing 30.5% as the total market value hit US$4bn and unit shipments climbed 13% year-on-year to 520,000. The Middle East and Africa (MEA) region surged forwards with server revenue and unit growth of 15.4% and 27.6% respectively. This boosted server revenues derived from MEA to US$288m in the first quarter — 7.2% of the total EMEA market. “In the large total addressable market, the variety of strong verticals such as oil, gas, mining and the public sector see continued investment flowing into both Central Eastern Europe and MEA,” explained Stefania Lorenz, programme manager at IDC. IDC also reckons that vendors are changing their sales tactics in EMEA as they look to boost margins in a sector characterised by a movement towards new form factors, the impact of currency fluctuations and lower average selling prices. “Vendor management has recognised this issue and is prioritising positioning for better margins by changing internal metrics, supplier dealing and channel relationships, for example,” said Nathaniel Martinez, programme manager IDC European enterprise server solutions. “We see vendors moving away from selling processor types and operating systems, pushing away from the discussion around technology to management, process integration, and so forth,” added Thomas Meyer, director at IDC European enterprise server solutions. According to IDC, the stable revenue growth of 3.7% year-on-year suggests that vendors are attempting to drive more margin into the server business by focusing on upsell, channel incentives and higher margin products as opposed to simply chasing pure volume market share. The Linux bandwagon showed no signs of slowing during the first quarter of 2005 in EMEA. Linux server volumes climbed 31.2% in number of units year-on-year accounting for 17.3% of all servers shipped in the first quarter and 8.8% of the total EMEA server market revenue. Blade server shipments continued to put in a strong performance with EMEA unit sales soaring 80.4% year-on-year to 34,000. In total, blade servers accounted for 6.5% of all units shipped and 2.3% of total EMEA revenue — some US$118.8m in the first quarter. IBM and HP continued their battle for top spot in EMEA with IDC pronouncing the first quarter a ‘statistical tie’. In revenue terms, IBM’s EMEA server sales slipped 1.5% year-on-year while HP climbed 4.5%. Sun maintained third place despite its EMEA server revenues slipping 9.5% year-on-year to US$412m. The real growth stars were Fujitsu Siemens and Dell, ranking fourth and fifth respectively in IDC’s ranking. Both vendors easily outstripped the overall sector revenue growth of 3.7%. Dell server revenues in EMEA climbed 22.4% year-on-year to US$324m as it picked up 8.1% of the total market. Fujitsu Siemens also steamed ahead with 21.9% sales growth year-on-year pushing its EMEA server revenues to US$402m and leaving it with an estimated 10% market share, marginally behind third place Sun’s 10.3%.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code