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September 2nd, 2009

IBM, Dell gain server share amid server sales carnage; HP share flat

Posted by Larry Dignan @ 6:42 am

Categories: Dell, Economy, General, Hardware Infrastructure, Hewlett-Packard, IBM, Infrastructure, Linux, Microsoft, Open Source, Operating Systems, Sun

Tags: Revenue, Dell Computer Corp., Hewlett-Packard Co., IBM Corp., Sales Strategy, Sales Force Management, Servers, Sales, Hardware, Larry Dignan

Server sales continue to tank with worldwide server revenue falling 30.1 percent in the second quarter to $9.8 billion. That decline has set up a market share duel that IBM appears to be winning, according to IDC.

According to IDC server revenue fell for the fourth consecutive quarter to the lowest sales tally since the research firm began tracking it in 1996. Unit shipments also fell 30.4 percent in the second quarter compared to a year ago. First quarter server sales fell 26.5 percent.

Simply put, few enterprises are refreshing their servers. What do you do amid the carnage? Duke it out for market share. IDC reckons that companies will have to refresh their servers at some point, but it’s unclear when.

In the meantime, here are the standings that illustrate how IBM and Dell are gaining share:

Dell and IBM have ganged up on Sun, the weak link, to gain market share, and HP stayed flat.

Under the hood:

  • Windows Server revenue fell 27.7 percent in the second quarter, but Microsoft had 38.1 percent market share.
  • Linux revenue fell 28.9 percent in the second quarter to $1.3 billion. That sum is good for 13.8 percent market share, up from 13.5 percent a year ago.
  • Unix server sales fell 30.9 percent in the second quarter to $3.1 billion. IBM gained 7.4 percent of Unix server market share to 41.4 percent. Sun had 27.3 percent of the market followed by HP at 24.8 percent.

Larry DignanLarry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.

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  • Talkback
  • Most Recent of 13 Talkback(s)
Virtual switches = latency
Sun designed it's blade servers to operate in existing environments, without having to redesign your network. The performance of the virtual switches, at least on HP Blades, is underwhelming at best.... (Read the rest)
Posted by: 914four Posted on: 09/07/09 You are currently: a Guest | | Terms of Use
RE: IBM, Dell gain server share amid server sales carnage; HP share flat  sonny_sof2@... | 09/02/09
Is this an anomaly because of the recession?  twirth5@... | 09/02/09
It's All in How the Chips Fall & IBM OWNS It! wink  i2fun@... | 09/04/09
Virtualization...  i8thecat | 09/02/09
Buy stock in Storage solutions...  gregormitchell@... | 09/02/09
RE: IBM, Dell gain server share amid server sales carnage; HP share flat  justkay@... | 09/02/09
IMHO the reason Sun market share fell...  914four | 09/02/09
It's not because of Oracle..  scotth_z | 09/04/09
Virtual switches = latency  914four | 09/07/09
RE: IBM, Dell gain server share amid server sales carnage; HP share flat  kimaterry | 09/02/09
RE: IBM, Dell gain server share amid server sales carnage; HP share flat  kjosephson@... | 09/02/09
Economy sinking all boats  terry flores | 09/02/09
RE: IBM, Dell gain server share amid server sales carnage; HP share flat  glider guider | 09/03/09

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