HP server group sees profit in Q4
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Hewlett-Packard's troubled Enterprise Storage and Servers group bounced back to profitability during its most recent financial quarter, and the company as a whole saw revenue rise 8 percent to $21.4 billion, the Palo Alto, California, company reported Tuesday.
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Sales lull has ended IBM squeaked by Hewlett-Packard to maintain its top position in worldwide server revenue during the first quarter this year, according to a new report.â¦
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Hewlett-Packard reports a slim rise in profits after increased sales across all of its business areas.
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The Hewlett-Packard Company said yesterday that its profits rose 27 percent in the fourth quarter as revenues reached record levels across its business lines.
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The worldâs biggest maker of corporate storage gear said fourth-quarter profit rose to $525.7 million, from $388.8 million a year earlier, on strong revenue growth across a broad range of products.
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Hewlett-Packard Co.  on Tuesday said quarterly profit topped its own lowered expectations as the computer and printer maker saw record revenues in every business and every region.
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(InfoWorld) - The server market remains strong but industry research shows unit shipment rates slowing as companies buy fewer, but more powerful, machines. The effects of virtualization, the emergence of multicore processing and other consolidation efforts are evident in server sales and market share numbers in IDC's Worldwide Quarterly Server Tracker report for the third quarter, released Wednesday. A similar trend toward slower server unit sales growth is seen in a third quarter server report released Tuesday by Gartner Inc. IDC reports that overall server revenue grew by 3.5 percent from the year-earlier quarter to $12.9 billion, the fastest growth rate in four quarters. But IDC analyst Jed Scaramella points to slower unit sales growth, particularly for industry standard servers, as evidence of virtualization and other data center consolidation efforts by customers. "We have started to see unit shipment in the x86 market tempered a little bit," Scaramella said. Unit shipments of x86-based servers grew by 8.8 percent in the third quarter, down from 9.8 percent in the second quarter and 11 percent in the first. Virtualization is the process of enhancing server utilization by running multiple applications on the same physical server. Without it, some servers only operate at 15 percent to 20 percent of capacity. Companies are also buying new servers with dual-core or quad-core processors that offer more computing power than older models with single-core processors. Thus, customers can enhance their data centers' capability with fewer servers, Scaramella said. The IDC and Gartner numbers show no change in the market share rankings, based on revenue, of the leading server vendors. IBM Corp. led with 33.1 percent market share on a 6.6 percent revenue increase to $4.28 billion, compared to the year-earlier quarter. Hewlett-Packard Co. held onto second place with a 26.3 percent share as its revenue declined 2.1 percent to $3.4 billion. Dell Inc. holds a 10.5 percent share on a 3.8 percent revenue increase to $1.36 billion. Sun Microsystems Inc. followed closely with a 10 percent share on a healthy 15.8 percent jump to $1.3 billion. Scaramella says Sun has rebounded from weakness a year ago, when its sales fell by 5 percent. Since then, Sun has introduced its Niagara line of servers and servers running Advanced Micro Devices Inc.'s Opteron processors, a rival to the dominant Intel Corp. processor. "Overall, Sun has been focused on performance per watt. They've been at the forefront of it," Scaramella said. Fujitsu Computer Systems Corp. ranked fifth with 5.3 percent market share on a 9 percent revenue decline to $690 million. The remaining vendors collectively held a 14.9 percent share on 4.4 percent revenue growth to $1.93 billion. Â
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Hewlett-Packard Co.  on Wednesday posted a slight rise in quarterly profit, fueled by revenue gains across all of its businesses, and its shares rose more than 2 percent in after-hours trade.
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Shares of Hewlett-Packard Co. , the No. 1 manufacturer of PCs and printers, fell 4 percent on Wednesday after its quarterly results underwhelmed some investors and raised questions about its growth momentum.
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By JORDAN ROBERTSON SAN FRANCISCO - Hewlett-Packard Co.'s first-quarter profit jumped 26 percent as the company benefited from higher sales of laptop computers, printers and printing supplies during a robust holiday spending season.
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HP is the latest to offer a server-storage product targeted to small- to mid-size businesses.
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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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Hewlett-Packard Co , the  world's largest personal-computer maker, on Tuesday reported a  higher quarterly profit as it sold more PCs and server  computers.
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Long-suffering server maker sees revenue gains after five years of declines.
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Hewlett-Packard Co.  said  on Tuesday quarterly profit rose 26 percent, helped by strong  performances in its printer and personal computing businesses.
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The Hewlett-Packard Co said on Tuesday that its profits rose 27 percent in the fourth quarter as revenues reached record levels across its business lines.
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Wringing profits out of a PC company is a demanding task for any business executive, but Hewlett-PackardÂ  believes the executive who has generated healthy profit margins within its printer division can work the same magic on its PC group in a combined organization announced Friday.