x86 Server Shipments Increased 18% to total more than 9,000 units in 2004 in the Philippines. says IDC

May 12, 2005

Manila, May 12, 2005 – According to IDC's Asia/Pacific Quarterly Enterprise Server Tracker, Q4 2004, the Philippines x86 server market totaled 9,006 units worth US$31 million, representing an increase of 18% and 6% respectively in 2004 compared to 2003. Although the year-on-year unit shipment growth decelerated, compared to the 24% increase in 2003, the Philippines market crossed the 9,000 unit shipment mark for the first time in a calendar year.

“Despite the economic and political uncertainties in the Philippines, demand for x86 servers remained strong in 2004,” said Nishant Dave, Senior Analyst, Enterprise Servers and Workstations research. “Technology refresh, server consolidation and new application deployments are expected to drive short-to-medium term growth in x86 server spending. IDC expects the x86 server market in the Philippines to exceed 10,000 units even though the year-on-year unit growth will decelerate to 15%."

The manufacturing segment remained the primary vertical market fuelling the demand for x86 servers in 2004. However, finance and distribution were the fastest growing segments with x86 server shipments into the two segments increasing significantly faster than the overall market.

A strong uptake of blade servers by telecom and finance segment customers underpinned the rapid adoption. Ease of management and higher utilization of computing resources are some of the key drivers for rapid adoption of blades.

HP retained the number one position in the Philippines x86 server market capturing 33.1% unit shipment share in 2004. However, in revenue terms, IBM superseded HP to take the market leadership position with 33.3% share. IBM's strong revenue growth stemmed from a higher mix of rack optimized and blade servers.

Philippines x86 Server Market Shares & Growth, 2003-04

Source: IDC, 2005

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