The outlook of the server industry at the end of 2012 was pretty dreary. Increased competition from new players, strong competition from start-ups and growth in the DIY sector all made a dent in shipments and revenues.
In addition, RISC and Itanium vendors, plus IBM, were in the middle of product transitions. At the time, several new processors were on the verge of being introduced, which might have resulted in some hesitation from OS customers. As a result, 3Q2012 ended with a small 3.6% increase in shipments while revenues fell by 2.8% to $12.6 billion. 
The x86 server platform, which has always been successful, is bringing positive news to the industry. Revenues rose 4.3% to $9.37 billion. HP continues to lead the way through their ProLiant, Scalable Systems and Bladesystem product lines. However, they do have competition. Fellow big box manufacturer Dell continued to show growth in its x86 business through the PowerEdge line. IBM and Fujitsu have some work to do as their numbers are slipping. Cisco has made major strides gunning for the #4 spot on the list. It seems that they have targeted IBM's server business and if they can maintain this growth, in two years, Cisco could become a major player in the x86 sector.
In the horizontal market, whitebox leader Super Micro has moved past a rough year in 2012. By staying with their core business in servers and storage, the company played the odds on x86 processors and posted a record high sales number at the end of 2012. Revenues increased to $219 million despite a slowing server market. This industry is heavy with competition, so Super Micro continues to work on new server designs and has plans to open factories in the Netherlands and Taiwan to provide better logistical support for its customers in those regions of the world.
Sales in Europe also declined last year by 9% to just short of $3 billion. This decline included x86 sales, although Dell made a strong effort. As predicted by Adrian O'Connell from Gartner, 4Q2012 sales were similar to the rest of last year. As a result, skepticism for the server and storage market in 2013 remains.
As with most electronics sectors recently, there will be a lot of wait and see. What are your thoughts? Let's hear them in the comments below.
Recommended Reading:
- Servers 101: Overheating and Prevention Tips
- Servers 101: Refurbished vs. Remanufactured vs. Used
- Servers 101: HDD Interface Comparison – SCSI vs. SAS vs. SATA
- 5 Things to Watch for When Buying Refurbished IT Gear
