Server sales slide; IBM, HP nearly tied for market share lead

Summary:Global server sales fell 5.2 percent in the third quarter, the largest decline since the fourth quarter of 2002.

Global server sales fell 5.2 percent in the third quarter, the largest decline since the fourth quarter of 2002. Meanwhile, Hewlett-Packard maintained a very slight market share lead over IBM, but statistically it's a tie, according to IDC.

According to IDC, third quarter global revenue was $12.6 billion, down 5.2 percent, but units were up 2.8 percent compared to a year ago. That shipment increase was the slowest since the fourth quarter of 2006.

By the numbers:

  • HP and IBM have 30.7 percent and 30.2 percent overall market share, respectively. However, HP, IBM and Dell all saw revenue declines ranging from 2 percent to 4.3 percent. Sun's server sales fell 10.9 percent in the third quarter compared to a year ago. In general, Sun is getting clocked in the server market.
  • Microsoft Windows server revenue was $5.1 billion in the third quarter, down 5.1 percent from a year ago. Windows represents 40.8 percent of all server revenue.
  • Linux server revenue fell 2.5 percent from a year to $1.8 billion, good for 14 percent market share.
  • Unix server revenue fell 8.4 percent from a year ago to $3.7 billion, or 29.7 percent market share.
  • IBM System z server revenue was up 24.8 percent, or 9.4 percent market share.

And here are the standings:


Topics: Hewlett-Packard, Banking, Enterprise Software, Hardware, IBM, Servers


Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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