Server Sales on the Rise Page 2

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Server Sales Broken Down by Operating Systems
Gartner also broke down vendor results for Intel-, Unix-, and Linux-based servers. While still billions behind mainstay Unix and Intel machines in sales, Linux-based system sales experienced volcanic growth, as many analysts had predicted.

In the past few years, HP, IBM, and Dell — after investing billions in marketing and research and development to bring products to market — have proven that Linux can be viable in enterprise computing space after investing billions in marketing and research and development to bring products to market. Customers have begun to believe the fanfare and are buying systems based on the open-source operating system at a prodigious clip.

According to Gartner, IBM and HP tied for a 60 percent growth in Linux system sales. However, HP enjoyed the most success in this sector with system revenue growing from $581 million to $927 million from 2002 to 2003. IBM grew from $345 million to $552 million year-over-year.

Dell, on the strength of its Microsoft Windows-based systems, led the way with 22 percent sales growth for Intel-based systems. IBM and HP followed with 21 percent and 17 percent growth, respectively. Overall, HP continued to dominate this segment with a nearly 34 percent share.

IDC's Worldwide Quarterly Server Tracker reported similar findings. It showed a 63.1 percent year-over-year growth for Linux servers, generating $960 million for the industry in the last three months of the year.

The results show "that Linux servers are taking on important roles in IT customers' computing infrastructure," Jean S. Bozman, an IDC research vice president, said in a statement. "What began with edge and Web-centric workloads is branching out to include [high-performance computing] and commercial workloads."

The IDC report also shows significant gains in the x86 server market, with revenue up 15 percent and unit shipments up 23 percent. Windows OS servers continue to grow as well. IDC said Windows servers accounted for 31.7 percent of quarterly server market revenue or $3.9 billion in the fourth quarter.

Unix servers sales, which many analysts believe are being cannibalized by the explosive Linux system growth, posted the least success in both surveys. Although Unix holds fast as the most prevalent and highest revenue generating server technology. IDC said the lumbering OS giant posted its first year-over-year growth in 11 quarters with revenue growth of 0.8 percent to $5.1 billion for the quarter. Gartner reported Sun and HP saw sales for these machines dip 16 and 4 percent, respectively. IBM, however, bucked the trend saw a 13 percent revenue increase for its pSeries servers.

Two stories that originally ran on internetnews.com. were used in this report.

This article was originally published on Mar 12, 2004
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