Oracle returns growth to Sun server business: IDC

Oracle benefitted from a resurgent Unix market to grow its server business for the first time

Oracle logged a small milestone in its Sun acquisition during the first quarter, expanding sales of Sun's server hardware for the first time in three-and-a-half years, IDC reported Tuesday.

Sun's server business was already in decline when Oracle announced plans to buy the company a little over two years ago. Sales plummeted further amid the uncertainty over what CEO Larry Ellison planned to do with the business.

Oracle has worked hard over the past year to convince customers it will continue to invest in Sun's hardware, and those efforts appear finally to be paying off.

Oracle logged US$773 million in server sales during the quarter, up from $681 million the year before, according to IDC's estimates. It's the first time IDC has reported an increase in sales of Sun hardware since the third quarter of 2007, said IDC analyst Matt Eastwood.

Oracle can't take all the credit, however. It rode on the back of a wider recovery in the server market, where overall sales were up 12.1 percent compared to the first quarter of 2010, to $11.9 billion, IDC said.

In particular, IDC noted a recovery in the sales of pricier, high-end servers, including mainframes and Unix systems. That benefitted Oracle, Hewlett-Packard and IBM, all of whom sell high-end servers.

HP remained the world's number-one server vendor by revenue, with its market share staying more or less constant at 31.5 percent. IBM, in the number-two spot, enjoyed the fastest growth and saw its market share expand to 29.2 percent, nipping at HP's heels.

Dell also increased its sales from a year earlier and remained in third place with 15.6 percent market share.

In fact, only Fujitsu did poorly. Its server sales declined almost 16 percent year over year, pushing it from fourth place into fifth, behind Oracle.

Fujitsu's decline could be tied to the massive earthquake and tsunami that devastated Japan in mid-March, Eastwood said. Although the earthquake happened close to the end of the quarter, the last two weeks of March are a time when many sales normally get finalized, he said.

IDC added Cisco Systems to its worldwide server tracker for the first time in the first quarter. Cisco entered the server market in 2009 with its Unified Computing System, which combines servers and network gear in a package.

Cisco took 1.6 percent of server revenue in the first quarter, Eastwood said. It has entered a "sweet spot" in the x86 server market, he said, by selling higher-priced server configurations designed for virtualization projects.

(IDC is a division of International Data Group, the parent company of IDG News Service.)

Join the PC World newsletter!

Error: Please check your email address.

Tags Cisco SystemsserversIBMhardware systemsFujitsuOracle

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

James Niccolai

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?