According to IDC, Worldwide Server Market Revenues Increase 2.5% in Second Quarter

August 27, 2014

FRAMINGHAM, Mass., Aug. 27 — According to the International Data Corporation (IDCWorldwide Quarterly Server Tracker, factory revenue in the worldwide server market increased 2.5% year over year to $12.6 billion in the second quarter of 2014 (2Q14). Server unit shipments improved 1.2% year over year in 2Q14 to 2.2 million units as investments in hyperscale datacenter capacity were largely offset by consolidation, which continued to be a strategic focus for many large and small customers around the globe. Additionally, IDC continues to see signs of a server refresh cycle that is expected to lift the market going forward.

On a year-over-year basis, volume systems experienced 4.9% revenue growth. This was the fifth consecutive quarter that volume system demand increased year over year. Midrange systems also experienced growth of 11.6% year over year as technology refresh cycles began to positively impact the segment. Meanwhile, high-end enterprise systems experienced a year-over-year revenue decline of -9.8% primarily due to difficult annual comparisons in the segment.

“The server market is experiencing the beginning of a cyclical refresh cycle as systems deployed shortly after the financial crisis are retired and replaced. IDC expects this refresh cycle will continue well into 2015 and be further accelerated by Microsoft’s announcement that it is ending support for Windows Server 2003 coupled with Intel’s forthcoming release of the Grantley Xeon EP and a significant number of related server platform announcements,” said Matt Eastwood, Group Vice President and General Manager, Enterprise Platforms at IDC. “At the same time, IDC is also seeing early stage enterprise investment in 3rd Platform workloads that leverage Webscale architectures typically seen in hyperscale environments. These workloads will drive additional interest in software-defined environments that will further enhance the need for servers deployed as the infrastructure underpinning these next generation datacenters.”

Overall Server Market Standings, by Vendor

HP held the number 1 position in the worldwide server market with 25.4% factory revenue share for 2Q14. HP’s 4.0% revenue growth included improving demand for x86-based ProLiant servers and continued weakness in Itanium-based Integrity server revenue. IBM held the number 2 spot with 23.6% share for the quarter as factory revenue decreased -10.2% compared to 2Q13. Demand for IBM’s Power -based systems declined sharply year over year in advance of a significant technology refresh. Dell maintained the third position with 16.6% factory revenue market share in 2Q14 as factory revenue declined -6.5% compared to 2Q13 as Dell works to re-align its PowerEdge server business with its solutions selling strategy. Oracle and Cisco ended the quarter in a two-way statistical tie for the number 4 position with 5.9% and 5.8% factory revenue share, respectively. Cisco’s 2Q14 factory revenue increased 35.4% compared to 2Q13, gaining 1.4 points of market share. Oracle’s factory revenue was up 3.9% year over year in 2Q14.

Top Server Market Findings

  • Demand for x86 servers improved in 2Q14 with revenues increasing 7.8% year over year in the quarter to $9.8 billion worldwide as unit shipments increased 1.5% to 2.2 million servers. HP led the market with 29.6% revenue share based on 7.4% revenue growth over 2Q13. Dell retained second place, securing 21.2% revenue share.
  • Non-x86 servers experienced a revenue decline of -12.8% year over year to $2.7 billion, representing 21.8% of quarterly server revenue. This was the twelfth consecutive quarter of revenue decline in the non-x86 server segment. IBM leads the segment with 69.1% revenue share following a year-over-year revenue decrease of -13.9% when compared with the second quarter of 2013.
  • Blade servers, which are highly leveraged in enterprises’ virtualized and converged environments, increased 7.0% year over year to $2.1 billion. Blades now account for 17.0% of total server revenue. HP maintained the number 1 spot in the blade server market in 2Q14 with 42.2% revenue share; Cisco and IBM held the second and third positions in the blade market with 25.2% and 13.7% revenue share, respectively.
  • Density-optimized servers, utilized by large homogeneous datacenters, experienced a difficult year-over-year comparison due to several large deployments that occurred in the second quarter of 2013. Revenue declined -7.6% year over year to $768 million as unit shipments decreased -16.1% to 216,314 servers. Density-optimized servers represent 6.1% of all server revenue and 9.7% of all server shipments.
  • Regionally, Asia/Pacific (excluding Japan) and Western Europe experienced the sharpest growth with year-over-year revenue increases of 6.9% and 6.0%, respectively. China continued to exhibit significant growth with year-over-year revenue up 19.4% to $1.8 billion. The top 4 Chinese OEMs — Inspur, Huawei, Lenovo, and Sugon — all grew revenue on a year-over-year basis by more than 35%.

“Modular servers – blades and density-optimized – represent distinct segments of growth for vendors in an otherwise mature market,” said Jed Scaramella, Research Director, Enterprise Servers and Datacenter at IDC. “As the building block for integrated systems, blade servers will continue to drive enterprise customers along the evolutionary path toward private clouds. On the opposite side of the spectrum, density-optimized servers are being rapidly adopted by hyperscale datacenters that favor the scalability and efficiency of the form factor.”

“Demand for servers in the public cloud continues to be a major driving force for server market growth,” said Kuba StolarskiResearch Manager, Enterprise Servers at IDC. “While many of the largest of these companies have already undergone periodic datacenter expansions over the past year, public cloud demand for new servers will continue to outpace the general market in the immediate future. As these customers search for new ways to maximize datacenter efficiency, their technological choices may help accelerate emerging trends in low power and alternative server architectures.”

IDC’s Server Taxonomy

IDC’s Server Taxonomy maps the eleven price bands within the server market into three price ranges: volume servers, midrange servers and high-end servers. The revenue data presented in this release is stated as vendor revenue for a server system. IDC presents data in vendor revenue to determine market share position. Vendor revenue represents those dollars recognized by multi-user system and server vendors for initial server shipments and upgrades sold through direct and indirect channels and includes the following embedded server components: frame or cabinet and all cables, processors, memory, communications boards, operating system software, other bundled software and initial internal and external disk shipments.

IDC’s Worldwide Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture. For more information, please contact Hoang Nguyen at 508-935-4718 or hnguyen@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

Source: IDC

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

‘Business Value’ of AI Heads Toward $4 Trillion

April 26, 2018

The rise of AI is reflected in recent market forecasts that predict it will help enterprises develop new products and services around applications like automated decision making. Market analyst Gartner Inc. forecasts Read more…

By George Leopold

Former AMD Chip Chief and ‘Zen’ Architect Jim Keller Joins Intel

April 26, 2018

Intel announced today it has hired top microprocessor architect Jim Keller as senior vice president to lead the company’s silicon engineering group, focusing on system-on-chip (SoC) development and integration. Read more…

By Tiffany Trader

Rackspace Is Latest to Roll Bare Metal Service

April 26, 2018

Rackspace is expanding its managed private cloud services with the addition of six new bare metal instances that it collectively refers to as bare metal as a service. The private cloud vendor announced the new managed Read more…

By George Leopold

HPE Extreme Performance Solutions

Hybrid HPC is Speeding Time to Insight and Revolutionizing Medicine

High performance computing (HPC) is a key driver of success in many verticals today, and health and life science industries are extensively leveraging these capabilities. Read more…

Google Charts Two-Dimensional Quantum Course

April 26, 2018

Quantum error correction, essential for achieving universal fault-tolerant quantum computation, is one of the main challenges of the quantum computing field and it’s top of mind for Google’s John Martinis. At a presentation last week at the HPC User Forum in Tucson, Martinis, one of the world's foremost experts in quantum computing, emphasized... Read more…

By Tiffany Trader

Google Charts Two-Dimensional Quantum Course

April 26, 2018

Quantum error correction, essential for achieving universal fault-tolerant quantum computation, is one of the main challenges of the quantum computing field and it’s top of mind for Google’s John Martinis. At a presentation last week at the HPC User Forum in Tucson, Martinis, one of the world's foremost experts in quantum computing, emphasized... Read more…

By Tiffany Trader

Affordable Optical Technology Needed Says HPE’s Daley

April 26, 2018

While not new, the challenges presented by computer cabling/PCB circuit routing design – cost, performance, space requirements, and power management – have Read more…

By John Russell

AI-Focused ‘Genius’ Supercomputer Installed at KU Leuven

April 24, 2018

Hewlett Packard Enterprise has deployed a new approximately half-petaflops supercomputer, named Genius, at Flemish research university KU Leuven. The system is Read more…

By Tiffany Trader

Cray Rolls Out AMD-Based CS500; More to Follow?

April 18, 2018

Cray was the latest OEM to bring AMD back into the fold with introduction today of a CS500 option based on AMD’s Epyc processor line. The move follows Cray’ Read more…

By John Russell

IBM: Software Ecosystem for OpenPOWER is Ready for Prime Time

April 16, 2018

With key pieces of the IBM/OpenPOWER versus Intel/x86 gambit settling into place – e.g., the arrival of Power9 chips and Power9-based systems, hyperscaler sup Read more…

By John Russell

US Plans $1.8 Billion Spend on DOE Exascale Supercomputing

April 11, 2018

On Monday, the United States Department of Energy announced its intention to procure up to three exascale supercomputers at a cost of up to $1.8 billion with th Read more…

By Tiffany Trader

Cloud-Readiness and Looking Beyond Application Scaling

April 11, 2018

There are two aspects to consider when determining if an application is suitable for running in the cloud. The first, which we will discuss here under the title Read more…

By Chris Downing

Transitioning from Big Data to Discovery: Data Management as a Keystone Analytics Strategy

April 9, 2018

The past 10-15 years has seen a stark rise in the density, size, and diversity of scientific data being generated in every scientific discipline in the world. Key among the sciences has been the explosion of laboratory technologies that generate large amounts of data in life-sciences and healthcare research. Large amounts of data are now being stored in very large storage name spaces, with little to no organization and a general unease about how to approach analyzing it. Read more…

By Ari Berman, BioTeam, Inc.

Inventor Claims to Have Solved Floating Point Error Problem

January 17, 2018

"The decades-old floating point error problem has been solved," proclaims a press release from inventor Alan Jorgensen. The computer scientist has filed for and Read more…

By Tiffany Trader

Researchers Measure Impact of ‘Meltdown’ and ‘Spectre’ Patches on HPC Workloads

January 17, 2018

Computer scientists from the Center for Computational Research, State University of New York (SUNY), University at Buffalo have examined the effect of Meltdown Read more…

By Tiffany Trader

How the Cloud Is Falling Short for HPC

March 15, 2018

The last couple of years have seen cloud computing gradually build some legitimacy within the HPC world, but still the HPC industry lies far behind enterprise I Read more…

By Chris Downing

Russian Nuclear Engineers Caught Cryptomining on Lab Supercomputer

February 12, 2018

Nuclear scientists working at the All-Russian Research Institute of Experimental Physics (RFNC-VNIIEF) have been arrested for using lab supercomputing resources to mine crypto-currency, according to a report in Russia’s Interfax News Agency. Read more…

By Tiffany Trader

Chip Flaws ‘Meltdown’ and ‘Spectre’ Loom Large

January 4, 2018

The HPC and wider tech community have been abuzz this week over the discovery of critical design flaws that impact virtually all contemporary microprocessors. T Read more…

By Tiffany Trader

How Meltdown and Spectre Patches Will Affect HPC Workloads

January 10, 2018

There have been claims that the fixes for the Meltdown and Spectre security vulnerabilities, named the KPTI (aka KAISER) patches, are going to affect applicatio Read more…

By Rosemary Francis

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

Deep Learning at 15 PFlops Enables Training for Extreme Weather Identification at Scale

March 19, 2018

Petaflop per second deep learning training performance on the NERSC (National Energy Research Scientific Computing Center) Cori supercomputer has given climate Read more…

By Rob Farber

Leading Solution Providers

Lenovo Unveils Warm Water Cooled ThinkSystem SD650 in Rampup to LRZ Install

February 22, 2018

This week Lenovo took the wraps off the ThinkSystem SD650 high-density server with third-generation direct water cooling technology developed in tandem with par Read more…

By Tiffany Trader

Fast Forward: Five HPC Predictions for 2018

December 21, 2017

What’s on your list of high (and low) lights for 2017? Volta 100’s arrival on the heels of the P100? Appearance, albeit late in the year, of IBM’s Power9? Read more…

By John Russell

AI Cloud Competition Heats Up: Google’s TPUs, Amazon Building AI Chip

February 12, 2018

Competition in the white hot AI (and public cloud) market pits Google against Amazon this week, with Google offering AI hardware on its cloud platform intended Read more…

By Doug Black

HPC and AI – Two Communities Same Future

January 25, 2018

According to Al Gara (Intel Fellow, Data Center Group), high performance computing and artificial intelligence will increasingly intertwine as we transition to Read more…

By Rob Farber

US Plans $1.8 Billion Spend on DOE Exascale Supercomputing

April 11, 2018

On Monday, the United States Department of Energy announced its intention to procure up to three exascale supercomputers at a cost of up to $1.8 billion with th Read more…

By Tiffany Trader

New Blueprint for Converging HPC, Big Data

January 18, 2018

After five annual workshops on Big Data and Extreme-Scale Computing (BDEC), a group of international HPC heavyweights including Jack Dongarra (University of Te Read more…

By John Russell

Momentum Builds for US Exascale

January 9, 2018

2018 looks to be a great year for the U.S. exascale program. The last several months of 2017 revealed a number of important developments that help put the U.S. Read more…

By Alex R. Larzelere

Google Chases Quantum Supremacy with 72-Qubit Processor

March 7, 2018

Google pulled ahead of the pack this week in the race toward "quantum supremacy," with the introduction of a new 72-qubit quantum processor called Bristlecone. Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Share This