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HP Beats IBM In Server Revenue

In surpassing IBM, HP had increases in both its ProLiant and HP Integrity brands, which offset some revenue declines in other brands, Gartner said.
Hewlett-Packard in the first quarter toppled IBM from the top of the server market based on revenue, besting Big Blue by less than 1%, market research firm Gartner said Thursday.

Total worldwide server shipments rose by 7.6% over the same quarter a year ago to 2.3 million units, and revenue climbed 4.3% to $13.6 billion, Gartner said. Shipments and revenue from x86 servers increased. RISC-Itanium Unix servers fell in shipments, but grew slightly in revenue.

In surpassing IBM, HP had increases in both its ProLiant and HP Integrity brands, which offset some revenue declines in other brands, Gartner said. Year to year, HP's overall server revenue rose 10.3% for the period, pushing HP's global share up 1.6%. HP and IBM ended the quarter with a revenue share of 29.6% and 28.9%, respectively.

Dell, Fujitsu/Fujitsu Siemens, and IBM had revenue growth for the quarter at 6.6%, 4.9%, and 2.1%, respectively. Sun Microsystems was the only major vendor to show a decline in revenue growth, dropping by just under 1%.

In server shipments, HP held on to the No. 1 spot with an increase of 7.8%. But Dell, the second largest server maker in terms of shipments, managed to narrow HP's lead by 1.5 percentage points for the quarter. HP finished with a 30.1% share, and Dell, which posted a 15.8% increase in shipments, had a 22.7% share.

IBM and Sun also increased shipments by 2.3% and 6.6%, respectively. Fujitsu/Fujitsu Siemens was the only major vendor to show a decline, falling 2.6%.

Gartner said a number of factors contributed to the overall increase in global shipments and revenue. "For example, x86 server replacements were on an upswing as the year commenced, we continued to see buildouts of large Web data centers, and emerging-market growth forged ahead," Gartner analyst Jeffrey Hewitt said in a statement.

RISC-Itanium Unix servers, however, saw a decline in shipments, while revenue grew by a small amount, Gartner said. In this segment, shipments fell 8.4% while revenue grew 3.7% for the quarter.