Server Revenue Flat for First Quarter, Gartner Dataquest

By Amy Newman (Send Email)
Posted Jun 11, 2003


Gartner Dataquest's recently released server revenue statistics for the first quarter of 2003 peg total server revenue at nearly $10.57 billion, 1 percent less than it was in the first quarter of 2003, and 10 percent less than it was in the last quarter of 2002.

Gartner Dataquest's recently released server revenue statistics for the first quarter of 2003 peg total server revenue at nearly $10.57 billion, 1 percent less than it was in the first quarter of 2003, and 10 percent less than it was in the last quarter of 2002.

The research firm's findings were similar to those released by IDC earlier this month. IDC's first quarter findings also revealed $10.5 billion in sales but had a year-over-year revenue decrease of 3.6 percent.

Gartner Dataquest, unlike IDC, placed IBM in the top spot for worldwide server revenue. Big Blue's nearly $3.2 billion in sales represents year-to-year growth of 8 percent. IBM also saw its market share grow 2.5 points, to 30 percent, in the first quarter.







1Q03 Worldwide Server Revenue and Market Share
(in Millions)
Company Revenue Market Share Year-to-Year Quarter-to-Quarter
Revenue Growth Market Share Changes
(in Points)
Revenue Growth Market Share Changes
(in Points)
IBM $3,167 30.0% 8% 2.5 -22 -4.7
HP $2,609 24.7% -7% -1.6 -13% -0.7
Sun $1,392 13.2% -20% -3.2 -6% -0.6
Dell $938 8.9% 23% 1.8 2% 1.1
Others $2,459 23.3% 1% 0.5 8% 3.8
Total Market $10,565 100% -1% 0 -10% 0

According to Gartner Dataquest, Hewlett-Packard maintained its lead in the Intel server space with nearly $1.3 billion in sales. The vendor's hold may be in decline though, as its market share was down 3.5 points compared to the first quarter of 2002 and 1.1 points from the the fourth quarter of 2002.

Dell and IBM took the second and third spots, respectively. Both vendors saw strong year-to-year growth -- Dell 23 percent, IBM 21 percent -- but the comparisons were less stellar when fourth quarter results were added to the mix. Dell's revenue increased only 2 percent, and IBM's declined 16 percent.

Sun Microsystems was again the hands-down winner in both the Unix and Unix/RISC segments. With nearly $1.4 billion in revenue, Sun continued to hold one-third of both markets; however, in both areas its revenue declined 20 percent year-to-year and at least 5 percent quarter-to-quarter.

In the Linux space, IBM again took top honors. Its $197 million in revenue represented 32 percent of the market. HP and Dell had market shares of 25 percent and 20 percent, respectively.

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