Gartner: x86 server sales growth slowed in Q4

Worldwide server shipments grew 8.9 percent in 2006 but revenue was up only 2 percent, according to Gartner.

Sales growth for x86 servers slowed in the fourth quarter of 2006 as buyers adopted virtualization technology and waited for quad-core processors, according to a Gartner report released Thursday.

Hewlett-Packard (HP) sold the most servers but IBM collected the most money for them in 2006, the report said.

Worldwide server shipments in the full year 2006 grew by 8.9 percent to 8.2 million units, but revenue grew only 2 percent to US$52.7 billion, compared with 2005, according to Gartner.

HP led the competition in server shipments, sending 2.2 million units out the door, up 8 percent from 2005. But IBM took the top spot on revenue, with $16.9 billion, up 1.7 percent from the previous year.

Shipments of x86 servers, the most widely deployed server platform, slowed in the fourth quarter, which held down full-year totals, said Gartner analyst Jeffrey Hewitt.

The growth was "slower ... than we have seen in most recent years," Hewitt said in a prepared statement. "Most of that slowdown seems to be attributable to a lengthening of the sales cycle due to the anticipated introduction of quad-core x86 processors, with some lesser impact from x86 server virtualization."

Virtualization software increases the utilization rate for servers, so a company could buy fewer servers than without virtualization.

The report also showed continued strength for Sun Microsystems, which posted a 15.4 percent gain in server revenue in 2006 to US$5.7 billion. Sun also increased its revenue market share to 10.8 percent, replacing Dell (10.3 percent) in the number three spot. IBM led with 32.2 percent of the market, followed by HP at 28.2 percent. While Sun was the only vendor to report double-digit revenue growth, it shipped just 368,000 units, about one-seventh the number of units that market leader HP shipped.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert Mullins

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?