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ServerWatch and IDC

Sean Michael Kerner, ServerWatch, Server Market Continues to Decline in 2013, here. This is going no place good. We could chat Oracle up on this – but I assume we want FP juice,  not historically a place where Oracle/Sun chose to play. We want to think rack scale with max FP cycles for codes that generally hit in  L2. We could relax this objective function to make racks that run codes that miss in L2 but hit in L3. DynaRack open servers L2hit and L3hithave the fast that trade automation craves (have someone in marketing figure this out – get Dax Shepard). For a smaller broker dealer – 1. it’s a growing market (they steal market share through 2016 14nm/10nm Broadwell/Skylake) with 2. super good chunky margins and 3. the engineering talent is available at a reasonable salary, it could work no? I guess the challenge is to get the Magoos lined up at the checkout counter – they’re not going to know why the DynaRack open server is better that the old HP Sandy Bridge server, other than it uses newer parts. Oh wait, the internet is made of fast. Yes.

IDC reported global first quarter 2013 server revenue to be $10.9 billion, which is a 7.7 percent year-over-year decline. Gartner reported the revenue decline to be only 5.0 percent, coming in at $11.8 billion.

IDC, 29 May 2013, Worldwide Server Market Revenues Decrease 7.7% in First Quarter as Market Demand Slows, here.

Top 5 Corporate Family, Worldwide Server Systems Factory Revenue, First Quarter of 2013 (Revenues are in Millions)

Vendor

1Q13 Revenue

1Q13 Market Share

1Q12 Revenue

1Q12 Market Share

1Q13/1Q12 Revenue Growth

1. HP

$2,947

26.9%

$3,460

29.2%

-14.8%

2. IBM

$2,793

25.5%

$3,224

27.2%

-13.4%

3. Dell

$2,028

18.5%

$1,842

15.5%

10.1%

4. Fujitsu*

$562

5.1%

$614

5.2%

-8.5%

4. Oracle*

$528

4.8%

$716

6.0%

-26.2%

4. Cisco*

$450

4.1%

$334

2.8%

34.9%

Others

$1,655

14.9%

$1,627

14.0%

-1.7%

All Vendors

$10,936

100%

$11,846

100%

-7.7%

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