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IBM, HP Remain Locked in Server Battle

In its latest survey of the server market, Gartner found that IBM led all other vendors in terms of revenue in the second quarter of 2007, while HP shipped more servers than any other OEM. Gartner, which is based in Stamford, Conn., released its latest findings Aug. 21. For the quarter, IBM's server revenue stood at about $3.8 billion, and the Armonk, N.Y., company saw increases in its mainframe systems, as well as its System x and System p offerings. Only IBM's System i revenues declined during the quarter. For the period, IBM held about 30 percent of the market, an increase of 6.5 percent over the second quarter of 2006, according to Gartner.

Overall, worldwide server market revenue increased a modest 5.1 percent for the second quarter of this year for a total of nearly $13 billion. Total server shipments increased 2.7 percent, and vendors shipped almost 2 million systems during the quarter. HP, which is based in Palo Alto, Calif., led OEMs in terms of shipments, as the company moved more than 650,000 systems in the quarter, an increase of 17 percent compared with last year. HP now controls 31.5 percent of this segment of the market.

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News source: eWeek]

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