Overall, worldwide server sales were $10.6 billion in the quarter, down 5.6% from the same quarter a year earlier. But IDC research VP Jean Bozman points out that this market contraction is the smallest year-over-year decline that the server market has seen in two years. "The big picture for the quarter is that the decline seems to have slowed worldwide," she says. "We know IT budgets have been under control for the past year, but we might see some increase in spending in 2003."
Worldwide server sales this year are still expected to be well below the market's $60 billion peak in 2000 as four of the top five vendors have seen revenue shrink from the third quarter of 2001. Only Dell, which was fourth in market share with 8.9%, posted revenue growth--sales were up 7.5% from the third quarter of 2001. For the quarter, IBM's server revenue was $3.2 billion, followed by HP with $2.9 billion, Sun with $1.3 billion, Dell with $920 million, and Fujitsu with $413 million.
Linux and Windows servers were the bright spots for the server market during the quarter, with the markets showing year-over-year growth of 26.7% and 3.2%, respectively. Unix server sales were down 10% for the quarter. HP was the top vendor in the standard Intel architecture server market with a 32.8% share, followed by Dell with 21.9%.