Server market grows after years of stagnant sales
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Low-end servers saw the most growth -- 11% year over year -- while growth in midrange server market came in at under 1%, researcher IDC said.
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IBM trails Sun Microsystems and Hewlett Packard in server sales, mostly because IBM&#39;s servers are too big and costly for smaller companies.
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Global server sales rose nearly 8 percent in the second quarter, compared to the same period last year, according to new data from Gartner.
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The PC market, long declared dead by some, grew in double-digit figures again in 2004. Dell expands lead as HP slips.
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International Data Corp. said growth in demand for Linux servers in Europe is expected to almost double by 2008. Microsoft is fighting back by cutting prices and through publicity campaigns that claim that
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(InfoWorld) - Swelling demand for high-end systems in the fourth quarter pushed the global server industry to its highest annual revenue since the market peaked in 2000 as IBMÂ and Hewlett-Packard held onto their top rankings. The industry overcame yet another quarter of slumping unit shipments to notch a 5.2 percent rise in quarterly revenue compared to the same period last year, pushing annual industry revenue up 2 percent to $52.3 billion in 2006, according to an industry report released Monday by IDC. The revenue came from an unexpected sector. For the first time in 10 years, quarterly demand for midrange and high-end systems outstripped demand for volume servers. Compared to the same period last year, fourth quarter revenue for high-end systems rose 11.5 percent, compared to rises of 5.4 percent for midrange servers and 2.1 percent for entry-level. Despite the changing market, the players remained the same. IBM claimed the largest chunk of revenue with 32.8 percent market share, followed by HP at 27.2 percent. With 10.8 percent share, Sun has a slight lead over DellÂ (10.3 percent) for third place but is growing much faster, IDC said. Fujitsu/Fujitsu Siemens was the only vendor whose server revenue dropped in 2006 as it held onto its position in a distant fifth place. Those numbers were nearly identical to aÂ server industry report released last Thursday by Gartner. IBM said much of its success came from its 32 percent share of the large Unix server segment and from strong growth in its SystemÂ Z mainframe sector, which posted its highest quarterly revenue in eight years with $1.7 billion, according to a statement by Bill Zeitler, senior vice president and group executive for IBM's Systems & Technology Group. Despite that success, IBM's Z/OS recorded just 11.2 percent market share by revenue in the quarter, far behind Microsoft's Windows OS at 34.9 percent and the Unix OS at 33.5 percent, according to IDC. Linux-powered servers showed fast growth to reach 11.9 percent share. In comparison, Sun boasted that its results were strong in every sector, lead by total server revenue growth of 24.4 percent, more than four times the growth of its closest competitor, HP. Sun said its key driver was its Solaris Unix OS, which allows to company to scale from x86 to RISC-based systems and claim market growth in diverse market niches, said John Fowler, executive vice president of Sun's systems group in a statement. Although the vendors may be pleased with their 2006 revenue, IDC warned they should be worried about slumping demand. The industry stumbled to its tenth consecutive quarter of slowing growth in units shipped, grinding to a halt with no growth in the fourth quarter of 2006. The main culprit is virtualization as corporate IT managers learn to save money by sharing a shrinking pool of hardware resources. That trend has hit the x86 segment the hardest, putting a dent in revenue for chipmakers such as IntelÂ and AMD. Â
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For the first time, quarterly revenues of Linux servers have exceeded $1 billion, according to a report from IDC. While Linux sales accounted for just 9.2 percent of the $11.5 billion in servers sold in the
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Blog: VMware and its competitors are helping to drive demand in market expected to more than double its current level in four years, according to an IDC report.
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Worldwide server revenues grew 5.5 percent year-over-year in the third quarter, led by strong demand for volume systems, according to research firm IDC.
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Microsoft said last week that its first-quarter net income rose 11% and revenue 12% because of strong server-software demand and steady sales of PCs that run its products.
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But still in fourth place Dell regained a healthy chunk of the server market according to the analysts at IDC, suggesting "the new Dell" push has taken a foothold.â¦
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Company expanding its reach after introducing the hosted service in the U.S. last year .
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TechWeb - The growth comes as more vendors offer more software to offset the plunge in storage hardware prices.
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NEW YORK: Global computer server sales rose 5.5 per cent in the third quarter to $11.5 billion (Â£6.2 billion) from a year ago, but growth was flat in dollar terms from the second quarter, market research firm IDC has said.
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Quarterly sales of servers running Linux have topped US$1 billion for the first time. According to analyst company IDC, sales during the third quarter of 2004 hit $1.06
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HP and Sun&#39;s ongoing bitter battle for server market share is being played out against overall global sales of servers that have surged strongly to surpass $11.
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Computer server sales in the Asia-Pacific region excluding Japan grew by a brisk 12.4 percent to 1.37 billion US dollars in the second quarter after a gain of 9.6 percent in the three months to March, an industry monitor said.