Worldwide server sales are down in First Quarter of 2013 says Gartner

Gartner INC, world’s leading information technology research and advisory company reports the declination of worldwide server sales by 0.7%, while revenue declined by 5% for the first quarter of the year 2013.

“The first quarter of 2013 was certainly not a strong period for the server market on a global level,” said Jeffrey Hewitt, research vice president at Gartner. Asia/Pacific and United States region is the only regions to post increases in shipment and revenue of 7% and 1.7% respectively.

Server Sales Down - Q1 2013
Server Sales Down - Q1 2013

Gartner report says “x86 server shipment growth was flat in the quarter, while revenue increased 1.8 percent. RISC/Itanium Unix servers declined globally for the period, down 38.8 percent in shipments and down 35.8 percent in vendor revenue compared to the same quarter last year. The ‘other’ CPU category, which is primarily mainframes, exhibited an increase of 3.6 percent in worldwide revenue”.

Below table gives the top five vendors revenue estimates of first quarter 2013 in US Dollars. All the top vendors suffered a revenue declines except for dell which grew 14.4 percent.

Gartner Report on server sales for Q1 2013
Gartner Report on server sales for Q1 2013

In terms of server shipments, HP remained the worldwide leader in the first quarter of 2013 (see below Table) in spite of a year-on-year shipment decline of 15.2 percent. Dell and Cisco were the only vendors in the top five to have positive shipment growth, with increases of 2.6 percent and 33 percent.

Gartner Report on server sales for Q1 2013
Gartner Report on server sales for Q1 2013

Does this surprises you ? Not even as the current trend is on using cloud without investing for the infrastructure. Developers make use of cloud as and when they require.