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back to article Server revenues decline in the third quarter

The server racket continues to be impacted by issues throughout the global economy and intense competition between incumbent players, upstarts, and those making their own hyperscale boxes. Shipment growth is anemic, revenues were down, and it is very likely that profits were down even further, according to the latest data. In …

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  1. Steve Foster

    Is Gartner's marketing strapline "Stating the Bleeding Obvious"?

    Well, fancy that, in the midst of crappy economic conditions, server sales aren't doing too well.

    It's about as much a surprise as most "surprise birthday parties".

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  2. Allison Park
    Paris Hilton

    Unix = IBM

    For those Itanium fanboys (or just Matt the fanboy) or Snorcle groupies getting burned by Larry you cannot deny the facts of a capitalistic world. Revenue & profit drive investment and innovation, especially in the high cost technology sector.

    "At the turn of the millennium, these Unix boxes dominated server revenues and Hewlett-Packard and Sun Microsystems were on top and IBM was the upstart. Now HP has declined massively, Sun has been eaten by Oracle and shrunk to drive profits, and IBM absolutely dominates Unix." Always curious if you just forget about HP/Oracle and only compare IBM mainframe, IBM Power and the x86 business if Unix would get a better growth view.

    "HP was the number two Unix system supplier in the quarter, with $387.5m in revenues, but sales were off 28.2 per cent." Still curious if the latest CEO is interested in Itanium, last I heard she said they need to get their Itanium customers to something they want hence Odyssey and because ISV's especially Oracle wont port to HP-UX/x86 they wont port something ISV's wont support.

    "Oracle revenues off 35.5 per cent to $354.8m." I am sure the profit margins are going up as they are cutting costs everywhere, raising maintenance prices and delaying products.

    " Fujitsu's Solaris server biz was down 23.2 per cent to a piddling $50m in the quarter." And why would Fujitsu stay in the Solaris business? Stubborn only lasts so long.

    e99

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  3. Anonymous Coward
    Anonymous Coward

    Ya think?

    Next think you know someone will declare there is an economic recession and high unemployment. Who knew...

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  4. spiny norman

    Bleedin Obvious?

    Nobody expects the Gartner and IDC figures to be a surprise. It means we can go beyond saying "it's bad" and quantify how bad it actually is, and maybe find some segments that aren't quite so bad as the rest.

    @Allison Park: If you take HP and Oracle Unix out of the equation, then, yes worldwide Unix growth looks substantially better. What conclusion you chose to draw from excluding 40% of the segment is another matter.

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  5. Anonymous Coward
    Anonymous Coward

    HP #1 market share?

    "...HP is so far out in front of IBM and Dell on the revenue front that it can decline for years and still maintain the number one server revenue position. ..."

    If Dell maintains its rate of growth (10%) and HP maintains its rate of decline (9%), they can maintain for about 1.5 years.

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