Server Market Sees Growth in Shipments, Decline in Revenue

Paul Lilly

Getting a grip on the server sector

Things are looking up in the server market, and at the same time, they're looking down as well. Say what? According to market research firm Gartner, worldwide server shipments grew 3.2 percent year-over-year in the fourth quarter of 2013, though overall revenue dipped 6.6 percent compared to the same quarter in 2012. Likewise, server shipments for all of 2013 rose 2.1 percent while revenue declined 4.5 percent.

Jeffrey Hewitt, who serves as Gartner's VP of Research, noted there was continued growth in web-scale IT deployments, but that the enterprise sector was relatively constrained. "In terms of hardware platform types, mainframe and RISC/Itanium Unix platform market performance kept overall revenue growth in check," Hewitt added .

Hewlett-Packard sits atop the server leaderboard. The company generated $3.8 billion in server-related revenue in Q4 2013, giving the firm a 28.1 percent state of the global market. IBM was a close second with $3.6 billion and a 26.5 percent stake, however those represents declines from $5.1 billion and 34.9 percent in Q4 2012.

Other than HP, only Cisco showed growth for the quarter, though it's share of the market is just 4.7 percent.

Follow Paul on Google+ , Twitter , and Facebook

Around the web