Server Sales Climb

The server market is taking off again after three years of slowing growth, says research firm IDC.

According to IDC's quarterly report, the server market grew 6.3 percent year-over-year to US$13.1 billion for the second quarter of 2007. The firm attributes this growth to users refreshing the servers used in their data centers and to expanded distributed-workload deployments.

Servers priced at under $25,000 sustained the largest growth -- at 11 percent year-over-year -- while growth of midrange enterprise servers (costing $25,000 to $499,000) grew by .2 percent, and high-end enterprise servers (costing more than $500,000) showed a 1.7 percent increase.

IBM led the server market with a 31 percent revenue share, followed by HP with a market share of more than 28 percent. Sales of IBM's System x, System z and System p servers accounted for the majority of the company's server revenue, while HP's growth could be attributed to ProLiant and BladeSystem servers, IDC says. IBM mainframes running the z/OS operating system accounted for 9.5 percent of all server revenue in the second quarter.

Sun's server revenue grew 5.6 percent year-over-year; the company is the No. 3 player with 13.1 percent of the market. Dell, which showed more than a 20 percent revenue growth in x86 servers, follows Sun.

On the operating system front, Linux servers represented 13.6 percent of server revenue. Microsoft Windows accounted for 38.2 percent of server revenue, and Unix system revenue tallied in at 31.7 percent of the market.

In x86-based servers, HP led the market with a market share of more than 35 percent, followed by Dell with more than 22 percent, then IBM with a 17.5 percent share.

The blade-server market also soared, with revenue growing 36.7 percent year-over-year. Blade servers accounted for $875 million, or 6.5 percent of the server market. HP held more than 47 percent of the blade-server market, followed by IBM with 32.3 percent.

This story, "Server Sales Climb" was originally published by Network World.

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