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Server market shrugs financial turmoil, steams ahead

Research and Analyst (opens in new tab) firm Gartner has published the latest Q3 figures over Server related shipments and revenues worldwide.

Volume Shipment for Q3 2007 were up by nearly 9 percent compared to Q3 2006 with total revenues worldwide hitting USD 13.4 bn - a 2.6 percent increase - with sales of 2.2m units, which puts the average selling price of each unit at just above USD 6000.

The main driver for sales has been the RISC/Itanium servers rather than x86 systems pointing to the possibility that a number of organisations are refreshing their existing mainframes/servers.

HP remained the top seller overall with nearly 30 percent of the market share and a 20 percent growth compared to 2006.

Dell came out second with almost 22 percent of the worldwide server shipment and a less than stellar 5.4 percent growth.

Looking beyond the primary data though and one can see a trend. While HP is a volume shipment leader, each server it sells actually brings in only USD 2800 on average, compared to more than USD 19200 for Sun Microsystems and USD 12700 for IBM.

Big blue may be shipping less server but it still rakes in more money in terms of server sales than the combined numbers of HO, Dell and Fujitsu Siemens.

Figures also showed that blade servers are hot property, literally, with a healthy 14 percent growth compared to 2006.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.