REVISED HP Loses Blade Market Share in Q2

Revised 9/29/2010 – I previously titled this blog post, “HP Loses Blade Server Market Share to IBM…” however I have since re-thought that statement. The report from IDC does not specify where HP’s blade server market share went from Q1 2010 – it only provides Q2 2010 market share numbers. I regret any confusion I may have caused.

Original post:

IDC came out with their 2Q 2010 worldwide server market revenue report last month which shows that HP lost blade server market share to IBM.

According to IDC, worldwide server sales (all servers, not just blade servers) for Q2 2010 factory revenues increased 11 % year over year to $10.9 billion in the 2nd quarter of 2010 (1Q10). They also reported the blade server market accelerated and continued its sharp growth in the quarter with factory revenue increasing 30.9% year over year, with shipment growth increasing by 13.6 compared to 2Q09. According to IDC, nearly 80% of all blade revenue is driven by x86 systems, a segment in which blades now represent 18.9% of all x86 server revenue.

While the press release did not provide details of the market share for all of the top 5 blade vendors, they did provide data for the following:

2Q 2010 Blade Server Market Results from IDC

#1 market share: HP decreased their market share from 56.20% in Q1 2010 to 55.8% in Q2 2010

#2 market share: IBM increased their market share from 23.6% in Q1 2010 to 24.2% in Q2 2010.

The remaining 20% of market share was not mentioned, but I imagine they are split between Dell and Cisco.

According to Jed Scaramella, research manager, Enterprise Servers at IDC, “Blade adoption continued to gain momentum in the second quarter of 2010, as blades accounted for its largest portion of total server revenue since the form-factor came to market. Vendors continue to build out their blade offerings through enhanced virtualization, management, and I/O capabilities; customers are leveraging these technologies as part of converged systems that are a building block to future internal cloud infrastructures.”

For the full IDC report covering the Q2 2010 Worldwide Server Market, please click here.

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