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AP region tops in server market – Gartner

Veronica C. Silva | March 7, 2012
China fuelling server business

There are empirical data to believe why the world is looking at the Asia Pacific region when North America and Europe are in economic shambles. Recent data from a market analyst firm reveal that the Asia Pacific is the fastest growing region for server shipments, and one country alone is mainly responsible for fuelling that growth - China.

Gartner data show that server shipments in the region grew 15.7 percent year-on-year in the fourth quarter of 2011 compared to the same period the previous year. Revenue also grew 2.4 percent from the same quarter last year. Server shipments in Hong Kong increased 34 percent year-on-year, but revenue fell at a rate of six percent.

Gartner said Hong Kong performed better than the rest of the Asia Pacific region owing to business buildup in China. Some businesses see Hong Kong as an entry to China or, conversely, as an extension of the business in China.

China's server shipment also grew, at 27 percent, while revenues increased 17 percent year on year.

"Asia Pacific was the fastest growing region for server shipments during the fourth quarter of 2011, with China as the main growth engine, supported by the continued momentum of data centre build-out," said Erica Gadjuli, principal analyst, Gartner. "Most major economies in the Asia Pacific region performed better than the rest of the world, which encouraged IT spending during 2011."

Country performance

In other countries in the region, server shipments, depending on the type of server, generally declined. 

The market for server shipment and revenues declined in Taiwan by 14 percent and five percent, respectively. Singapore, a mature market, also posted declines year-on-year - six percent for shipment and seven percent for revenues.

South Korea's server market grew in shipment by 16 percent but revenue declined nine percent. Gartner said only the x86 servers, known in the industry as the Intel or PC-based servers, contributed to the growth. The other server platforms, namely mainframe, RISC, and Itanium-based servers, were not able to help boost the market performance.

In Malaysia, revenue from all server categories by CPU type except mainframe declined year-on-year, which also led to a slowdown of six per cent in overall revenue in the fourth quarter of 2011 compared to Q4 2010. The server market in Australia was also generally weaker across all server platforms, finishing at 10 percent lower year-on-year in shipments and 39 percent in revenue.


Among the different types of servers, the x86 servers are still the favourite while the bigger servers suffered declines in market performance. Gartner said businesses prefer the richer configurations of rack-optimised and blade servers for which x86 servers are suited.


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