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Sun Server Revenue On The Rise In Q2

Sun was the only vendor in the top four to post an increase, a new IDC study says. HP and IBM hold on to first and second place despite revenue declines.
Sun Microsystems toppled Dell from the No. 3 spot in terms of worldwide server revenue in the second quarter, and was the only vendor in the top four to post an increase, market research released Wednesday showed.

IBM and Hewlett Packard Co. held on to first and second place, respectively, but reported slight revenue declines, Gartner Inc. and International Data Corp. said. Overall, worldwide server revenues increased, with x86 systems showing the highest growth rates.

Gartner pegged Sun's revenue growth at 13.7 percent over the same quarter a year ago to $1.6 billion. IDC, on the other hand, said Sun grew by 15.5 percent to $1.6 billion. Research firms' numbers often differ due to methodology.

IDC had Sun regaining the No. 3 spot in terms of revenue from Dell, increasing its overall market share to 12.9 percent from 11.2 percent a year ago. Dell, on the other hand, fell to No. 4 with a drop of 1.3 percent to $1.27 billion. Dell's market share dipped to 10.3 percent from 10.5 percent.

Gartner had Sun holding on to third place with a 13.1 percent market share, compared with 10.5 percent for Dell.

Overall, worldwide server revenues grew in the second quarter over a year ago by 0.6 percent, according to IDC; and 2.5 percent, according to Gartner. The former pegged overall revenues at $12.3 billion, while the latter said it was $12.4 billion.

After 15 consecutive quarters of double-digit year-over-year revenue growth, spending on Linux servers slowed to 6.1 percent over a year ago to $1.5 billion, IDC said. Linux accounted for 12 percent of all server revenue, up slightly from the second quarter in 2005.

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Brian T. Horowitz, Contributing Reporter
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Brandon Taylor, Digital Editorial Program Manager
Jessica Davis, Senior Editor
Cynthia Harvey, Freelance Journalist, InformationWeek
Sara Peters, Editor-in-Chief, InformationWeek / Network Computing