Who Are We Buying Our Servers From?

The advent of cloud computing means we aren't buying as many servers as we used to, and that's reflected in flat server sales worldwide, according to Gartner. In the Asia-Pacifc region, who dominates?

Servers picture from Shutterstock

Asia-Pacific is actually the only part of the world where server sales grew in the second quarter of 2013, Gartner found, with shipments up 21.7 per cent and revenues up 10 per cent compared to the same quarter last year.

In terms of shipments, Dell is the biggest single player, with 23.6 per cent of the market. HP comes in second with 17.1 per cent, followed by IBM (14.3 per cent), Inspur Electronics (10.5 per cent) and Huawei (9.8 per cent). The 'other' category accounts for 24.8 per cent, reminding us that white box sales are still a key part of the market.

When it comes to revenue, the figures look rather different. IBM has 33.2 per cent of revenue in the region, followed by HP (20.5 per cent) and Dell (17.7 per cent). That reflects the fact that IBM and HP concentrate on higher value gear such as the IBM System Z series.


    Can we get a link to the Gartner results? or perhaps a screen shot of this?

    I'd say the revenue differential has little to do with those big ticket items as they are not sold that often in ANZ.

    In my experience it is that IBM X series and HP Gen8 series are state of the art and they therefore charge a premium. From experience Dell has always been a year or two (usually two+) behind in technology as it takes time to reverse engineer other company's innovation.

    The Blade/Flex/Mainframe systems would have an impact as well, however the majority of that revenue differential would be from the price difference of each brands rack servers.

    I reckon the reason the revenue for IBM is higher than anyone else is their go to market model. Sell services because of all the customisation required for their hardware. 100% margin on this. Make hardware proprietary so it costs even more. To put in perspective for every $1 in server value that Dell sells they sell 20 cents in services (mostly open standards). For HP its about $1.50 for every dollar spent. For IBM its off the scale. Poor blighter's who go down this path. Marketing its all about an exchange of value right?

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