According to a Gartner report, global server shipments have dropped 0.2% during the fourth quarter of 2012 to 2.5 million units, while revenue rose 5.1% compared to the corresponding quarter in 2011.
During 2012, global server shipments rose 1.5%, while revenues declined 0.6%.
Gartner research vice president, Jeffrey Hewitt, said that 2012 was a year that saw budgetary constraint resulting in delays in x86-based server replacements in enterprise and mid-sized data centres.
"Application-as-a-business data centers such as Baidu, Facebook and Google were the real drivers of significant volume growth for the year," Hewitt said.
"Relatively weak mainframe and RISC/Itanium Unix platform market performance kept overall revenue growth in check."
North America reported highest rise in server shipments with 5.5% rise and was followed by Asia/Pacific and Latin America with 3.4%and 0.2% rises respectively.
Gartner research director, Adrian O’Connell said that EMEA was once again the weak spot for global server sales.
"Each of the three EMEA sub-regions saw revenue contract with Western Europe declining 7.9 percent, Eastern Europe 7.3 percent and the Middle East and Africa region down 3.7 percent," O’Connell said.
"Without the strong growth of the hyperscale segment that is benefiting the North American markets, or the continued macroeconomic growth of emerging regions in Asia/Pacific, EMEA is more exposed to the global weakness of enterprise spending on server infrastructure."
IBM topped the list of global server market revenues during the quarter which reached $5.1bn and achieved a market share of 34.9%, up from 33.7% during the fourth quarter in 2011.
HP topped the list of global server shipments with 26.5% market share, while its shipments declined 5.9% during the quarter.