Server shipments up 8.5% in first quarter, says Gartner

Shipments and revenue grew across all server segments and regions in Q1

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Server shipments up 8.5% in first quarter, says Gartner Server shipments and revenue grew in Q1 2011, says Gartner.
By  Mark Sutton Published  May 28, 2011

Server shipments and revenues grew worldwide in the first quarter of 2011, according to figures from Gartner.

Shipments were up 8.5% year-on-year, to 2.3 million units, while the total size of the market in revenue grew 17.3% to reach $12.7 billion.

Gartner reported strong growth across all regions, and good performance in all product segments. The x86-based server market saw strong growth in revenue, as average selling prices rose, while the RISC/Itanium segment returned to growth.

In terms of form factors, x86 blade servers showed the highest revenue growth, up 24.6% with shipments up 6.1%, while rack optimized servers grew the most in shipments, up 11.2% with 19.6% in revenue compared to the same quarter last year.

Jeffrey Hewitt, research vice president at Gartner commented: "The first quarter continued a quarterly trend of year-on-year growth in both shipments and vendor revenue. All regions showed growth in both shipments and vendor revenue, with the exception of Japan.

"x86 servers forged ahead and grew 8.6% in units for the year and 17.5% in revenue. Following earlier trends, the x86-based server market provided an increase in average selling prices that pushed revenue higher than shipments, and this was the case in the first quarter for all regions," Hewitt said. "RISC/Itanium Unix servers finally exited their slump and grew 5.2% in shipments and 20.7% in vendor revenue, compared with the same quarter last year. The ‘other' CPU category, which is primarily mainframes, showed a growth in vendor revenue of 19.6%."

On the vendor front, all top five vendors with the exception of Fujitsu saw revenue growth in Q1, while only HP and IBM saw shipments increase.

HP continued to lead global server markets, with shipments up 2.3%, while revenues grew 12.9% to $3.8bn. Gartner attributed the growth increases in HP's x86 ProLiant brand.

IBM ranked second by revenue, with growth of 23.3% taking it to $3.8bn, or 29.7% market share, while it was third in shipments, which showed only 1.6% growth year-on-year.

Dell held third place by revenue, at $1.9bn, up 13.1%, while on shipments in held second place, accounting for 22% of the total shipments in Q1.

Fujitsu ranked fourth in shipments, and fifth in revenues, with revenue slipping by 8.3%, to $591m, with the positions reversed with Oracle, which saw server revenues up by 33.6% to $798m, against a decline in shipments of 13.5%, leaving it with just 1.6% market share by shipments.

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