IDC Q3 2009 Report: Blade Servers are Growing, HP Leads in Shares

IDC reported on Wednesday that blade server sales for Q3 2009 returned to quarterly revenue growth with factory revenues increasing 1.2% year over year.  However there was a 14.0% year-over-year shipment decline.  Overall blade servers accounted for $1.4 billion in Q3 2009 which represented 13.6% of the overall server revenue.  Of the top 5 OEM blade manufacturers, IBM experienced the strongest blade growth gaining 6.0 points of market share.  However, overall market share for Q3 2009 still belongs to HP with 50.7%, with IBM following up with 29.4% and Dell in 3rd place with a lowly 8.9% revenue share.Q3_2009_Blades According to Jed Scaramella, senior research analyst in IDC's Datacenter and Enterprise Server group,  "Customers are leveraging blade technologies to optimize their environments in response to the pressure of the economic downturn and tighter budgets. Blade technologies provide IT organizations the capability to simplify their IT while improving asset utilization, IT flexibility, and energy efficiency.  For the second consecutive quarter, the blade segment increased in revenue on a quarter-to-quarter basis, while simultaneously increasing their average sales value (ASV). This was driven by next generation processors (Intel Nehalem) and a greater amount of memory, which customers are utilizing for more virtualization deployments. IDC sees virtualization and blades are closely associated technologies that drive dynamic IT for the future datacenter."