IBM continues market leadership in servers market in revenue in Q3 2011

IBM in Vietnam, Philippines and Thailand ranked #1 in overall server revenue market share for Q3 2011

Petaling Jaya, 28 December 2011 – IBM today announced continued leadership momentum within the Enterprise Server market in ASEAN, sustaining strong market share and clinching the top spot, as reported by leading IT market research and advisory firm, IDC.

According to IDC’s Asia/Pacific Quarterly Server Tracker, IBM took the top spot in the ASEAN non-x86 server market with 59.1% revenue share in Q3 2011. IBM’s success was powered by IBM Power Systems™ and System z servers. In the high-end enterprise server segment, IBM captured 78.8% revenue share in Q3 2011.

IBM’s top position in the RISC/EPIC server market was boosted by several large deals in ASEAN, helping to move the numbers in IBM’s favour. High-growth companies such as Retailink, one of Thailand’s leading distributors and maintenance providers of retail equipment and management systems in the Philippines and a subsidiary of CP All, CIMB Thai Bank in Thailand, one of Thailand’s leading banks and Hoang Anh Gia Lai Group, one of Vietnam’s largest diversified organizations with business interests in property, forestry, minerals, rubber plantation and latex processing, have been turning to IBM's Power Systems not only to drive efficiencies, cut costs and better manage their operations, but also to run advanced analytics to gain insight into business trends and improve their competitive position.

These clients’ choice was also based on the fact that POWER7 systems have been designed with innovative workload-optimizing technologies to better manage traditional applications, and also the demands of emerging applications.

IBM also recently announced a new server, the z114, a powerful version of the IBM zEnterprise System, to extend the mainframe's innovation and unique qualities to more organizations, especially companies and governments in emerging markets such as those found here in ASEAN, who are experiencing rapid growth in new services for banking, retail, mobile devices, government services and other areas. These organizations are faced with ever-increasing torrents of data and want smarter computing systems that help them operate efficiently, better understand customer behavior and needs, optimize decisions in real time and reduce risk.

The new IBM zEnterprise 114 mainframe server allows mid-sized organizations to enjoy the benefits of a mainframe as the foundation for their data centers, costs less, with dramatic savings on floor space and energy.

IBM also reported success in the growing markets of the Philippines, Vietnam and Thailand, fueled by interest and success in Smarter Computing. Smarter Computing refers to smarter architecture that can help clients gain actionable insights from data, increase IT capacity and deliver new services faster to create profitable business opportunities. IBM introduced its Smarter Computing approach to information technology earlier this year as a way for organizations to realize greater efficiencies, improved reliability, and better performance, and all, at lower costs. The strategy centers around three fundamental aspects: leveraging analytics to exploit vast amounts of data for business goals; utilizing optimized systems that are designed for specific tasks; and managing as much of the IT as possible with cloud-computing technologies.

In the Philippines, IBM swept the top spot in terms of overall server revenue market share, with a 48% share, gaining 11.8 points of share over the same quarter in 2010, while IBM’s overall server market revenue was 16.9 points higher than the next closest competitor in Q3 2011.

IBM was also the number one ranked vendor in terms of market share in Philippines in Q3 2011 for:
Ø High-end Enterprise ($250k+ servers) segment with 87.1% revenue share (an impressive 74.3 points higher than the next closest competitor)
Ø In the combined total of RISC and EPIC server segment IBM captured 66% revenue share (a strong 38.6 points higher than the next closest competitor)
Ø Nonx86 Unix server revenue share at 63.4 percent (a stellar 33.9 points higher than the next closest competitor)
Ø Linux server revenue share at 46.1 percent (an acceptable 13.9 points higher than the next closest competitor

“IBM’s success is being powered by investments in differentiated systems and technologies, where we continue to lead in innovation, scalability and performance. As the Philippine economy continues to grow, clients are looking increasingly to IBM to help modernize their IT infrastructures, realize cost savings and innovate for growth. We remain focused on investing in future growth and innovating for our clients and our communities," said James Velasquez, Country General Manager, IBM Philippines.

In Vietnam, IBM was ranked as the number one server vendor, in terms of overall server revenue market share with a 44.3% share, gaining 9.2 points of share over the same quarter in 2010. IBM's overall server market revenue share in Q3 2011 was 17.5 share points higher than the next closest competitor in Q3 2011.

IBM was also the number one ranked vendor in terms of market share in Vietnam in Q3 2011 for:
Ø High-end Enterprise ($250k+ servers) segment with 84.3% revenue share (a powerful 68.6 points higher than the next closest competitor)
Ø RISC/EPIC servers segment with 74% revenue share (a compelling 59.3 points higher than the next closest competitor)
Ø Nonx86 Unix server revenue share at 74 percent (a strong 59.3 points higher than the next closest competitor)

Baruch Rubin, Country Manager of System and Technology Group, IBM Vietnam, said: “Vietnam IT market may not be huge, but certainly growing and sophisticated. As a growing market, IBM has the full attention to it, and listens to the customers and their needs. As a sophisticated market, IDC results show that the customers recognize the value that IBM servers and storage systems can bring them. Those are the two simple factors that made us number one, again, in terms of market share.”

In Thailand, IBM reclaimed the number one server vendor position, in terms of overall server revenue market share with a 44% share, gaining 1.6 points of share over the same quarter in 2010, making IBM's overall server market revenue 15.1 share points higher than the next closest competitor in Q3 2011.

IBM was also the number one ranked vendor in terms of market share in Thailand in Q3 2011 for:
Ø High-end Enterprise ($250k+ servers) segment with 82.1% revenue share (a substantial 67.9 points higher than the next closest competitor)
Ø RISC/EPIC servers segment with 45% revenue share (a stellar 15.3 points higher than the next closest competitor)
Ø Nonx86 Unix server revenue share at 45.5% (a compelling 16.5 points higher than the next closest competitor)
Ø Linux server revenue share at 42.3% (an acceptable 12.3 points higher than the next closest competitor)

Tanapong Ittisakulchai Country Manager, System & Technology Group, IBM Thailand said “Our continued momentum is being powered by our investments in differentiated systems and leadership technology, where we continue to push the envelope in terms of innovation, scalability and performance. While some of our competitors are plagued by distractions, IBM remains focused on investing in future growth and innovating for our clients. As the Thailand economy continues to grow, clients are looking increasingly to IBM to help modernize their IT infrastructures, realize cost savings and innovate for growth. IBM is committed to always finding ways to deliver value to our clients, as at the end of the day, it's about the customer, about delivering highly scalable, cost-effective, energy-efficient solutions that help clients differentiate themselves in their chosen markets."

Said Phong Taylor, Vice President, Systems & Technology Group, IBM ASEAN, "Our smarter computing initiative leverages IBM's strengths in the key areas of big data and analytics integration, optimized systems and cloud computing to transform client IT infrastructures and make them smarter. This validation of IBM’s leadership in the Enterprise Server space within ASEAN cements our stand that IBM continues to develop and deploy the powerful technologies that growing businesses need to improve efficiency, innovate and scale for future growth.”

Source: IDC’s Worldwide and Asia/Pacific Quarterly Server Tracker, Q3, 2011 (released in December 2011)