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HP capitalises on IBM/Lenovo deal to lead global server market

HP capitalises on IBM/Lenovo deal to lead global server market

"There were several factors that produced the strong growth in the server market in 2014."

In the fourth quarter of 2014, worldwide server shipments increased 4.8 per cent year over year, while revenue grew 2.2 percent from the fourth quarter of 2013, according to Gartner.

In all of 2014, findings show that worldwide server shipments grew 2.2 per cent, and server revenue increased 0.8 per cent.

"There were several factors that produced the strong growth in the server market in 2014," says Jeffrey Hewitt, research vice president, Gartner.

"On a worldwide basis, hyperscale datacentre deployments as well as service provider installations drove the x86-based server market upward.

"Enterprises had less unit growth impact because of the ongoing presence of physical server consolidation through x86-server virtualisation.

"This overall market growth developed despite declines in both mainframe and Unix platforms."

In the fourth quarter of 2014, the regions with the highest growth rates in terms of unit shipments were the Middle East and Africa (10.7 per cent), Asia/Pacific (9.1 per cent) and North America (7.6 per cent).

HP led the worldwide server market based on revenue in the fourth quarter of 2014, but only grew 1.5 per cent year over year with the company ending the year with $3.9 billion in revenue for a total share of 27.9 per cent worldwide.

Meanwhile, IBM experienced a decline of 50.6 per cent while Lenovo experienced strong growth of 743.4 per cent.

The significant changes in IBM's and Lenovo's growth rates are due to the completion of the sale of IBM's x86 server business to Lenovo in the fourth quarter.

In server shipments, HP remained the worldwide leader for the fourth quarter of 2014, even as its shipments declined 11.0 per cent.

HP’s revenue increase compared with its shipment decline suggests a shift to sales of servers with richer configurations and relatively higher average selling prices to continue to support server consolidation through virtualisation, in addition to a tough comparison when the company had large hyperscale deals a year ago.

On the while, 2014 was a relatively moderate growth year in the server market with overall increases of 2.2 per cent in shipments and 0.8 per cent in revenue.

According to Gartner, x86 servers continue to be the predominant platform used for large-scale data centre buildouts across the globe, and the growth of integrated systems, while still relatively small as an overall percentage of the hardware infrastructure market, also provided some growth contribution to the x86 server space for the year.

Consequently, the outlook for 2015 suggests that modest growth will continue in the server space on the whole.

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