Asia Pacific server market maintains double digit surge in third quarter

Shipments increased 23.9% while revenue up 18.5% in the same period of 2011.

The Asia Pacific server market continued its double digit growth in the third quarter of 2011, with year-on-year shipment growth of 23.9 percent and revenue up 18.5 percent compared to the same quarter last year, according to Gartner, Inc.

“Asia Pacific remained as the strongest region for server shipment growth during the third quarter of 2011,” said Gartner principle analyst Erica Gadjuli. “Greater China (China, Hong Kong and Taiwan in combined) ruled 69.7 percent of the region’s total market, up 2 points from the same quarter last year.”

Server shipments in other main countries in Asia Pacific experienced double digit growth year on year: 20 percent in Australia, 14 percent in South Korea and 18 percent in Singapore. Meanwhile vendor revenue rose moderately from the same quarter last year with 6 percent growth each in Australia and Singapore and 2 percent in South Korea.

Asia Pacific as a region recorded the fastest year-on-year growth in the x86 server platform during the quarter, up 29 percent in revenue and 25 percent in shipments. Besides the virtualization implementation on x86 servers that forged ahead in this region, demand from internet companies continued to be part of the main driver for server growth, especially in China. Revenue from RISC/Itanium Unix servers increased 11 percent from the same quarter of 2010, fostered by core infrastructure build out predominantly in the financial and telecommunication sectors.
Despite a modest increase of 8 percent in unit shipments, blades saw more rapid growth in revenue (14.5 percent) compared to the same quarter of 2010. For the period, rack optimized servers climbed the fastest with 32 percent in shipment and 22 percent in revenue.

HP remains the leader in shipments with 25 percent of the total market and IBM led by revenue with 42 percent share. Lenovo more than doubled its revenue from the same quarter of 2010, as shown in Table 1, driven mainly by its aggressive move in China across all major verticals. Similarly, Dell was second in-line in witnessing a robust year on year growth in the third quarter, owing its success mostly to Internet companies buying its DCS offerings.

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Tags: Asia Pacific server market, server market, server shipment