View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
February 29, 2004

Server revenue continues to climb thanks to weak dollar

Worldwide server revenue grew by 3% in 2003 according to research firm IDC, thanks to a 11.4% spurt in the fourth quarter, which was itself mostly as a result of the weakness of the dollar.

By CBR Staff Writer

According to Framingham, Massachusetts-based IDC’s figures the worldwide market for servers reached $45.7bn in 2003, up 3.2% from $44.3bn in 2002. Unit shipments grew 18.3% to 5.3 million.

IBM topped the table for both the full-year and the fourth quarter. For the whole of 2003 Big Blue sold $14.4bn, up 11.3%, giving it 31.6% share. Hewlett-Packard notched up $12.5bn in server revenue, up 0.7%, giving it 27.3% share.

Sun Microsystems took the biggest hit with server revenue down 11.4% at $5.4bn, giving it 11.8% share, while Dell racked up the biggest growth with revenue up 14.3% to $4.1bn for 9.1% share. Fujitsu and its Fujitsu Siemens joint subsidiary are the only other vendors worthy of being singled out for special attention. Together they sold $2.8bn worth of servers, up 5.4% with 6.2% market share.

Overall, fourth-quarter revenue jumped 11.4% to $13.7bn, representing the third consecutive quarter of growth, although a favorable exchange rate for US-based server vendors was responsible for much of that.

Without a weak dollar, server revenue would have grown by just 3% in the quarter, IDC said. Unit shipments were up 22% in the quarter, outstripping revenue growth and indicating that volume servers continue to outpace the market. IDC noted that revenue growth was seen in volume, midrange and high-end servers for the first time since 2001.

Fujistu and Fujitsu Siemens enjoyed by far the biggest growth in the fourth quarter, shifting $734m worth of servers, up 31.3% for 5.4% market share. It was still some way behind its nearest rival Dell in the quarter, although it did close the gap. Dell revenue of $1.2bn was up 19%, giving it 8.6% share of the market.

Once again IBM dominated the quarter with revenue up 17.7% to $5.2bn, giving it 37.9%. In comparison HP’s server revenue was up just 9.4% in the quarter to $3.5bn for 25.8% share. Sun’s server revenue dropped 1.7% to $1.4bn for the quarter for 10.4% share.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Factory revenue for x86 servers grew 15% to $5.5bn in the fourth quarter, while unit shipments jumped 23% to 1.4 million. There was good news in the Unix server space as well, however, with revenue up 0.8% at $5.1bn, the first year-over-year growth in 11 quarters according to IDC, while unit shipments grew 12.1%.

IBM was the number-one Unix server vendor with 32.9% of server revenue in the quarter, with HP in second place with 30.5% share. Strong growth in unit shipments of 18.2% saw Sun strengthen its position in third spot with 27.6% of Unix server revenue.

Linux continues to outpace the market and its competitors. Linux server revenue grew 63.1% to $960m, while unit shipments grew 52.5%. In comparison revenue for servers running Microsoft’s Windows grew 16.1% to $3.9bn in the quarter, with unit shipments up by 23.3%.

This article is based on material originally published by ComputerWire

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU