Worldwide Server Market Revenues Increase 13.2% in Third Quarter as Market Accelerates Further, According to IDC

IDC News Release, 12/1/10

According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market increased 13.2% year over year to $11.8 billion in the third quarter of 2010 (3Q10). This is the third consecutive quarter of year-over-year revenue growth and the fastest quarterly revenue growth since 2000, as market demand continued to improve around the world. Server unit shipments increased 13.1% year over year in 3Q10; however, server shipment growth moderated slightly over the strong 23.1% year-over-year shipment growth reported in the second quarter of 2010.

Volume systems experienced the sharpest improvement with year-over-year revenue increasing 22.8%, the fourth consecutive quarter of positive growth for the segment. Midrange server demand improved significantly with year-over-year growth of 19.8%, the segment’s second consecutive quarter of positive growth following nine quarters of decline and a sign that server market conditions are improving more broadly beyond volume systems. Demand for high-end enterprise systems continued to be soft, as revenue declined 10.4% when compared to 3Q09. This is the eighth consecutive quarter of contraction in the high-end enterprise server segment of the server market.

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