IDC: Server market stabilizing as Dell gains share

Dell Computer Corp. was the only top-five vendor to post year-over-year revenue growth in the server market during the third quarter, according to research released Wednesday by IDC.

Worldwide server revenue was US$10.6 billion for the quarter, a 5.6 percent decline over last year's third quarter, during which businesses struggled with the aftermath of the Sept. 11, 2001, attacks in the U.S.

That 5.6 percent decrease is the smallest year-over-year drop the server market has seen in the last two years, according to IDC, which hailed the slowing decline as a sign that the server market is stabilizing. Results in the fourth quarter should continue to improve, the research firm said.

Dell's server revenue for the quarter climbed 7.5 percent, to US$920 million worldwide, placing it fourth in market share based on revenue.

Leader IBM Corp., with nearly 30 percent market share, saw its revenue slip 0.4 percent, by IDC's calculation, while number-two vendor Hewlett-Packard Co.'s revenue dropped 15.8 percent, to US$2.88 billion. Sun Microsystems Inc. ranked third, with revenue down 3.4 percent at US$1.28 billion.

IDC's findings regarding Dell mesh with researcher Gartner Inc.'s third-quarter figures, released in October. Calculating according to unit shipments rather than revenue, Gartner reported 18.1 percent growth for Dell worldwide amid declines for IBM and HP.

Sun, however, posted growth according to Gartner's data, with unit shipments up 17.5 percent year-over-year worldwide.

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