Dell sees server growth

According to IDC’s Worldwide Quarterly Server Tracker, Dell is rapidly climbing the ladder in the server market, with its growth outpacing that of rivals. Meanwhile, Sun saw its revenues decline.

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By  Simon Duddy Published  August 29, 2005

According to IDC’s Worldwide Quarterly Server Tracker, Dell is rapidly climbing the ladder in the server market, with its growth outpacing that of rivals. Meanwhile, Sun saw its revenues decline. Although Dell and Sun tied for third place in factory revenue with 11.3% and 10.5% share respectively, Dell experienced 22.3% year-over-year revenue growth while Sun’s revenues declined 5.3% when compared to 2Q04. IDC says this is the fourth consecutive quarter that Dell and Sun have been within one point of market share. Dell also maintained the number two spot in terms of worldwide server shipments with 25.3% share, growing shipments 25% compared to 2Q04. Dell’s growth is due to a buoyant volume server market. IBM maintains the number one spot in the worldwide server systems market with 31.9% market share in factory revenue, growing its revenue by 4.1% when compared to 2Q04. HP continued to hold the number two spot in terms of factory revenue with 28.5% share, growing revenue 11.5% compared to 2Q04. In terms of unit shipments, HP maintained its position as the number one vendor worldwide with 29.6% server shipment share growing 6.4% year over year. IDC says server revenue growth is pointing they way to increasing IT investment. According to its figures, factory revenue in the worldwide server market grew at 5.6% year over year to US$12.2 billion in the second quarter of 2005, marking the ninth consecutive quarter of positive overall revenue growth. Volume server revenue grew 11.1% year over year and continues to represent the primary growth engine for the server market overall. Revenue for midrange enterprise servers grew 4.3% year over year, marking the second consecutive quarterly increase in that segment. However, the high-end enterprise server market, which grew from 4Q03 through 3Q04, declined 3% year over year, its third consecutive quarter of reduced spending. While the high-end enterprise server market dipped, sales of high-end Unix servers grew, demonstrating their resilience in the corporate data centre as platforms for mission-critical workloads and workload consolidation. “IT acquisition patterns are changing, and we are seeing the product mix of server investments change over time,” says Matt Eastwood, programme vice president of Worldwide Server Research at IDC. “Strength in midrange servers and Unix high-end servers shows that customers are balancing their scale-out volume server deployments with scale-up servers to handle business-processing workloads,” he explains.

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