I recently was asked, am I seeing server vendors exiting the blade server market? If so, what are they selling in place of blades? Honestly, I was surprised by the question. The only whisper of any exits from the blade market were stirred up last year with the rumors of Cisco exiting. I address that in this post, but I wanted to see if there was any validity into what was being asked, so I dug around. I was surprised by what I found. Continue reading
Every quarter IDC publishes market data for blade server vendors. In the past I’ve only covered the top 4 main stream vendors, Cisco, Dell Technologies, HPE and Lenovo. However, I recently came upon IDC’s full list of blade server vendors so I thought it would be good to share.
Earlier this month, IDC published their Q3 2020 WorldWide Server tracker data showing the top server vendors. in this post, I’m going to dive in and take a closer look at how blade servers are performing including which vendor is leading the blade server market. Continue reading
IDC published their Q3 2015 findings last week, and the results were overall positive. In year over year revenues, the worldwide server market saw revenues increase of 5.1%, or $13.4 billion, the sixth consecutive quarter of growth while shipments grew 4.5%, or 2.49 million units. Specific to blade servers, IDC reported Dell’s blade server revenue grew faster than that of any of the top 5 vendors at 34.8%, however Cisco remained at the #2 blade server market share holder behind HP. Continue reading
IDC released their Worldwide Quarterly Server Tracker yesterday and reported an overall 6.1% year over year (YoY) growth in servers. IDC had very little mentions about blade server market but reported the following: Continue reading
IDC and Cisco confirmed this week that Cisco has taken the #1 x86 blade server spot in North America for Q1 in 2014 with 40% revenue market share according to a recent CRN report. This is quite an accomplishment especially since Cisco has only been reporting their numbers for 3 years. So you might wonder – what is the secret to Cisco’s success? I have a few ideas (right or wrong) that might shed some light on why Cisco is having success in their blade server business.
A recent CRN article showed that Dell has gained significant shares the server space over HP and IBM, however an IDC representative states that units shipped do not represent accurate market share, and I disagree.
Hot off the presses is the latest IDC worldwide server market revenue report for Q3 2011. The gist of the report is that while some of the numbers are slightly adjusted, really not much has changed in the blade server market.
Revenue growth for the entire server market (all servers, not just blade servers) slowed considerably showing only 4.2% year over year growth bringing in $12.7 billion. Growth in the world of servers continues but this marks the slowest growth rate for any quarter since Q1 2010. IDC believes that overall server sales will continue to decelerate due to weakening economic conditions around the globe. “After nearly two years of steady revenue growth, the server market began to decelerate in Q3 2011 as demand stabilized for many system categories,” said Matt Eastwood, group VP and general manager. Incidentally, IBM and HP are both holding steady, tied for the #1 spot in revenue share, at 29.8%.
When looking at the blade server market specifically, growth was steady for Q3 2011 but not as explosive as Q2 2011. IDC reports “solid growth” in the quarter with a revenue increase of 16.4% year over year (vs 26.9% growth in 2Q11). Shipments increased 2.4% (vs 6.2% reported growth for 2Q11). One thing that hasn’t changed since last quarter is that 89% of all blade revenue is driven by x86 systems. Also, blade server sales representing 20.8% of all x86 server revenue. This shows continued steady growth for the blade server segment but that the pace may be slowing slightly.
#1 market share: HP managed to hold the majority margin moving to 51.0% in Q3 2011 from 51.9% in Q2 2011.
#2 market share: IBM continues to see its margin chipped away slightly down to 18.5% in Q3 2011 from 19.1% in Q2 2011.
#3 market share: Cisco’s disruptive market penetration seems to have slowed at 10.7% overall compared to a solid 10% in Q2 2011.
#4 market share: Even Dell dropped slightly to 7.2% revenue share from 8.2% last quarter.
In looking at the totals, the top four vendors represented 87.4% of the revenue share in the blade servers market which is actually down 2% from last quarter. Cisco grew revenue share by less than 1% which means that some of the displacement of the remaining top vendors is not accounted for. Does this mean there may be some new players in the “others” category that we should be watching? Without a detailed breakdown it’s hard to tell but I’ll definitely be looking forward to comparing the numbers next quarter to see if the trend continues. It could, after all, just be a factor of the margin of error in the statistics.
According to Jed Scaramella, research manager, Enterprise Servers at IDC, “Blade systems represented the fastest growing segment in the server industry and now account for 16.0% of total server revenue – a historic high.”
Probably the most interesting aspect of the report is the introduction of hyper-scale servers. “Hyper-scale servers are designed for large scale datacenters with streamlined system designs that focus on performance, energy efficiency, and density.” This sounds like the mantra for blade servers with the main difference being the lack of management and high availability capabilities at the hardware level. Basically these represent the miles of simple, rack mount commodity servers used by the likes of Google and Facebook. This is a $428 million dollar server segment and growing.
For the full IDC report covering the Q2 2011 Worldwide Server Market, please visit IDC’s website at http://www.idc.com.
IDC came out with their 2Q 2011 worldwide server market revenue report on Aug. 23, 2011 which shows that IBM may be poised to take over the #1 spot within the next few quarters. Continue reading
May 24, 2011 – IDC came out with their 1Q 2011 worldwide server market revenue report today showing that Cisco has finally entered the market standings with a 3rd place standing at 9.4% factory revenue share . IDC’s findings also showed that both HP and IBM decreased their blade server market share from Q4 2010. Continue reading