IDC, a provider of market intelligence and advisory services, Wednesday reported that fourth-quarter factory revenue declined 14% in the worldwide server market on a year-over-year basis. All of the top five server vendors saw declines in their quarterly and annual server revenue, the first time since the first quarter of 2002.
##CONTINUE##
According to IDC's Worldwide Quarterly Server Tracker, total factory revenue for the quarter was $13.48 billion, compared with $15.67 billion a year ago. Volume systems experienced the sharpest impact, with a year-over-year revenue decline of 16.8%. Worldwide server unit shipments were down 12% for the quarter.
IDC also said that midrange enterprise demand fell 14.5% while the high-end enterprise segment saw a revenue decline of 7.5% when compared with the year-ago fourth quarter. This is the first time since 2002 that all three server segments have experienced a year-over-year revenue decline in the same quarter, illustrating the immediate impact of the economic downturn, IDC noted.
Commenting on the report, Matthew Eastwood, group vice president of IDC's Enterprise Platforms Group, said, "The server market experienced its sharpest decline since the middle of the dot-com slowdown nearly seven years ago. All server vendors, geographies, and technology segments were impacted significantly as the global recession gained momentum and market conditions weakened as the quarter progressed."
The research firm said that IBM (IBM: News ), which held onto its number 1 spot in the worldwide server systems market with a 36.3% market share in factory revenue, recorded a 15% decline in its revenue to $4.9 billion. Although IBM experienced significant weakness in System x, demand for its power-based systems improved in the quarter.
HP (HPQ: News ), which maintained the number 2 spot with a revenue market share of 29%, reported fourth-quarter factory revenues of $3.91 billion, a 10.1% decline from last year. According to IDC, HP was helped by a relatively strong October during its fiscal year end.
Dell (DELL: News ) posted quarterly factory revenues of $1.42 billion, down 9.9% from $1.58 billion in the prior-year quarter. Dell maintained third place with a factory revenue market share of 10.6%. Sun Microsystems' (JAVA: News ) fourth-quarter factory revenue was $1.25 billion, a decline of 14.1% from $1.46 billion in the same quarter last year. Sun's factory revenue market share was 9.3% for the quarter.
Fujitsu/Fujitsu-Siemens, holding a 4.2% factory revenue share in the fourth quarter, experienced a 14.9% decline in factory revenue to $567 million. Others together generated factor revenues of $1.42 billion in the fourth quarter, a 23.5% slide from last year's $1.86 billion.
For fiscal 2008, worldwide server revenue declined 3.3% to $53.3 billion, while worldwide unit shipments grew 2% to 8.1 million units. IDC said that this is the first time the server market has exceeded 8 million units in a calendar year, reflecting continued demand for new physical servers even as virtualization makes significant gains in the enterprise.
"It now appears the slowdown will worsen before any improvement is seen in late 2009 or early 2010. In the near term, IT customers will increasingly look for IT optimization projects with strong ROI potential and extend virtualization, consolidation, and migration programs in order to lower capital and operational costs while improving efficiencies," Eastwood added.
IBM rose $2.03 and ended Tuesday's trading at $86.40, on a volume of 12.92 million shares.
HPQ closed Tuesday's trading at $29.62, up $0.34, on a volume of 40.93 million shares.
DELL shares gained $0.27 and ended at $8.26 on Tuesday, on a volume of 32.81 million shares.
JAVA ended at $4.94 on Tuesday, up $0.36, on a volume of 17.13 million shares.
-----------------------------
BY RTT Staff Writer
Source：RTTNews
Copyright © 2009 RTTNews. All rights reserved.
Subscribe to:
Post Comments (Atom)
Posts
0 comments:
Post a Comment