Easy recovery in the server market

IDC and Gartner have provided figures for the second quarter of 2014. Both market watchers are seeing rising sales. However, after the previous quarters brought mainly shrinking markets, 3.8 (Gartner, EMEA) and 2.5 (IDC, worldwide) percent growth seem to be good news compared to the year-ago quarter. IDC believes that especially a new update cycle could continue to drive the market in the coming months. Gartner sees it as similar, but is a little less optimistic:

“The second Quratal 2014 represents a major milestone in the server market for many vendors, as both Q2 and Q2 sales are growing for the first time since 2011,” said Errol Rasit, Research Director at Gartner. “Despite the constant improvements in the server market, these show positive results, but only the end of a decline and less a return to growth.”

Above all, the mixed differences between the various manufacturers and in the different regions made it clear that there are still major challenges, especially in Europe. While Gartner expects further growth in the second half of the year, users are still fussy about technology and costs, and this behavior could also hamper further growth.

IDC, however, seems to see other stimuli in the market. Market researchers are now seeing the beginning of a new hardware update cycle following the financial crisis: “IDC expects this cycle to continue well into 2015, and is fueled by Microsoft’s announcement of support for Windows Server “The announced market launch of Intel’s Grantley Xeon EP and related new server models will also reinforce this trend,” commented Matt Eastwood, Group Vice President and General Manager, Enterprise Platforms at IDC. Eastwood sees a further boost in the growing interest of companies in software-defined environments . That’s another reason why users have to rely on new platforms that support such approaches.

Despite the announced divestment of the x86 server division to Lenovo, the number two in Europe (in terms of revenue) could still grow. However, IBM’s earnings are suffering from a cyclical low in mainframe sales and the generally challenging Unix market. 13.5 percent, Dell can increase sales. For quantities, Dell is up 5.5 percent.

In the worldwide consideration, the IDC has now submitted, but there are also other drivers for x86: Large providers such as Google or Facebook would currently invest heavily in infrastructure and thus drive the market. But as before, fewer and fewer companies would buy Unix or mainframe systems. A new development that drives the server market as a whole can be found in so-called Converged Infrastructure Systems, such as those offered by Cisco.

Cisco can increase sales worldwide by more than 35 percent, achieving a market share of 5.8 percent in the second quarter of 2014. According to the IDC, the market will increase from $ 12.3 billion in the months of April to June 2014 to $ 12.6 billion. In the global view, however, loses IBM in the wake of uncertainty by selling to Lenovo about 10 percent of sales. Dell, which is no longer listed on the stock market, loses 6.5 percent.

Only 21.8 percent make up the entire non-x86 server market. Compared to the same period last year, revenues are down 12.3 percent from $ 2.7 billion to $ 21.8 billion, according to the IDC. IBM, which remains the market leader with 69.1 percent here, sees a decline of almost 14 percent in sales in this area.

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