HP tops IBM in recovering server market, Gartner says

Sales of x86 servers are up sharply from a year ago, but Unix and mainframe revenue declined

Hewlett-Packard knocked IBM from the top spot in worldwide server revenue during the first quarter, as the market for x86 systems picked up but sales of Unix and mainframe systems continued to decline, Gartner said on Tuesday.

Worldwide server revenue climbed 6 percent from a year earlier, to US$10.8 billion. Unit shipments climbed 23 percent to 2.1 million, meaning selling prices were generally lower.

The economy is on the mend and organizations are upgrading older servers, said Jeffrey Hewitt, research vice president at Gartner. New Xeon processors from Intel were an added impetus to buy new equipment, he said. But the industry hasn't returned yet to the quarterly highs it posted in 2008.

Revenue from servers based on x86 chips was $7.18 billion, up 32 percent, while unit shipments climbed to 2.06 million. Revenue from high-end RISC and Itanium-based servers declined by 27 percent, and the "other" category -- mostly mainframes -- declined by 15 percent.

The trend favored HP and Dell, who saw the biggest revenue gains during the quarter, and hurt Oracle especially.

HP's server revenue totaled $3.39 billion, up 15.9 percent year over year to give it 31.5 percent of the market. IBM's revenue dropped by 2.1 percent to $3.05 billion, giving it 28.4 percent. In third place was Dell, whose revenue grew by 35.5 percent to $1.67 billion, a 15.6 percent market share.

Oracle saw steep declines despite assuring customers that it will continue to invest in Sun's server business. Shipments dropped 29.5 percent year over year to 42,528 units, while revenue declined 38.7 percent to $598 million. Uncertainty continues to harm the business, but some buyers may also be waiting for new Ultrasparc processors, Hewitt said.

He's not writing off Oracle's hardware business yet, however; he noted that sales cycles on RISC servers are usually longer, and new chips are on the way.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags HPOracleGartnerserversDellIBM

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?