©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market increased 12.1% year over year to $11.9 billion in the first quarter of 2011 (1Q11). This is the fifth consecutive quarter of year-over-year revenue growth, as server market demand continued to improve around the world. Server unit shipments increased 2.5% year over year in 1Q11 to 1.9 million units, which is the second highest quarterly total ever reported in the first calendar quarter of any year.
Improved market conditions were seen across all three server classes — volume, midrange enterprise, and high-end enterprise. Volume systems experienced an 8.7% year-over-year revenue increase, the sixth consecutive quarter of positive growth for the segment. Midrange enterprise demand improved for the third time in the past four quarters, with a sharp 28.3% year-over-year revenue increase. Finally, the improving market conditions extended to the high-end enterprise segment, as quarterly revenue increased 14.2% when compared to 1Q10. This is the first time in eight quarters that all three segments of the server market have experienced a year-over-year revenue increase in the same quarter.