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Aug 31 2015

IDC Says Server Sales Rise in Q2/2015

A year-over-year vendor revenue growth of 6.1% equaling $13.5 billion, due to more demand in both the US and the Asian-Pacific sphere, characterized global server sales according to statistics for the second quarter of 2015 published by US-based market researcher International Data Corporation (IDC).

Compared to the same period last year, server shipments increased by 3.2% to 2.29 million units worldwide, says IDC's press release, which is based on the results of its Worldwide Quarterly Server Tracker for August 2015. Tower sales slightly declined while the general upward trend for blade models as well as density- and rack-optimized systems is now in its fifth consecutive year. The volume server segment showed expansion, with its year-over-year increase of 8.1% in revenue to $10.1 billion, while sales of high-end machines grew 4.0% to $2.3 billion. According to IDC, growth in the volume segment was prompted by an increasing demand for x86-based hyper-scale server infrastructures and a refresh of x86-based platforms at both large enterprises and SMBs; high-end systems benefitted from the launch of IBM's z13 mainframes in January. By contrast, the positive effects of the x86 refresh are practically over for the midrange segment, leading to a revenue loss of -5.4% and total sales of $1.1 billion.

IDC's vendor ranking shows HP in the top position with a 25.4% market share, equaling a 7.7% year-over-year revenue growth to $3.43 billion. The runner-up was Dell with 17.5% market share and a revenue growth of 5.9% to $2.37 billion. IBM remains at number three with 14.8% market share and nearly $2 billion revenue; however, Big Blue lost nearly one tenth of its market share and one third of its server revenues after dropping its x86 business. Lenovo and Cisco share the fourth position in what IDC calls a "statistical tie," that is, a difference in market shares of less than 1%: Lenovo's quota skyrocketed to 7.0% and $949.2 million revenue – a phenomenal increase of 556.1% that was spurred by its acquisition of IBM's x86 server business in fall 2014. Cisco for its part made $866.7 million and arrived at 6.4% market share. At 19.3% its revenue growth was considerably higher than the industry average; IDC researchers believe this suggests that Cisco's expansion into the server market isn't over yet. All other vendors hold a combined market share of 28.7%; this includes original design manufacturers (ODMs) that account for roughly one quarter of this amount or $942.6 billion in revenues, whereas the smaller, unnamed brands collectively reached $2.9 billion in sales. ODMs were able to increase their revenues and market share by 12.9 and 0.4% respectively; smaller brands grew by 11.9 and 1.2%.


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