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Consolidated Growth In Servers

Computer servers have been witnessing the biggest transformation since the days when mini computers displaced mainframes from the enterprise market in the late eighties. With cloud computing, virtualization and software-as-a-service applications triggering a revolution in the IT landscape, there have been some exciting technological advancements in the server market.


In terms of size, the server market has seen modest growth rates in absolute unit numbers over the past few quarters, globally as well as in India. According to IDC, for 2011, worldwide server revenue increased 5.8 percent to $52.3 billion as compared to 2010, while worldwide unit shipments increased 4.2 percent to 8.3 million units.

In India, the numbers have been fairly stagnant over the past few quarters, with the market in 2011 estimated to be around 143,000 units by IDC India. This means there has been only marginal growth since 2008 when the server market totaled 135,000 units.

According to IDC, IBM, HP, Dell and Oracle are the top four players in the market. These companies cumulatively held 90.6 percent of the total market in Q42011. IBM led the year with a 32.8 percent factory revenue share and was followed by HP with 28.1 percent. However, HP and Dell were the leaders in terms of unit shipments.

“Overall, the server market has declined slightly last year as a result of plummeting shipments in the entry-level x86 models. There were further obstacles in Q42011 such as the high dollar conversion rates and the challenges with hard disk availability and pricing,” says Madhan Dhandayutham, Research Manager, IDC. “The non-x86 market also witnessed sharp de-growth in revenue during 2011, with Oracle and HP showing dropping numbers and with only IBM increasing factory revenue.”

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 Computer servers have been witnessing the
 Consolidated Growth In Servers