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November 29, 2009

Worldwide Q3 server revenue down 15.5% to $10.7 billion, says Gartner

IBM gains top spot with 31.7% market share

By CBR Staff Writer

Worldwide server shipments dropped 17.1% to 1.92m units for the third quarter of 2009, compared to the same period last year, while worldwide server revenue for the same period declined 15.5% to $10.7 billion, according to a study by IT research and advisory firm Gartner.

Gartner said that four of the top 5 vendors posted double-digit declines in revenue year over year. Dell was the only vendor with a single-digit revenue decline of 5.1% among the top five vendors.

IBM held the highest market share revenue in the worldwide server market with 31.7%, a lead of 1.5% over second-place HP. IBM server vendor revenue declined 12.3% to $3.4 billion, compared to same quarter last year, HP declined by 15.1%, Fujitsu declined 10.8%, while Sun Microsystems experienced the highest decline of 32.3% to $784.56m, compared to the same period last year.

In server shipments, Hewlett-Packard retained the top spot with a market share of 32.1% in the third quarter of 2009, driven primarily by its ProLiant brands. HP server shipments decreased 15% to 615,694, compared same period last year. Dell held the second spot with 22.8% market share, followed by IBM and Fujitsu with 12.8% and 3.5% share, respectively, Gartner said.

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Sun Microsystems showed the highest decline in the server vendor shipment with 38.3% year over year to 50,435, accounting 2.6% of the total market share. While the global server providers all posted year-on-year shipment declines for the quarter, all of the vendors experienced sequential shipment increases for the period.

Jeffrey Hewitt, research vice president of Gartner, said: It is important to put the yearly declines into perspective. Looking at the third quarter results from the sequential perspective, they showed an increase of 13.8% in shipments and 10.2% in revenues when compared to the second quarter of this year. That suggests that the market as a whole is showing signs of stabilisation as we move toward the end of 2009.”

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