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Linux Servers Top $1b; IBM Top Dog in Servers

Linux Servers Top $1b; IBM Top Dog in Servers

Linux servers topped a billion dollars for the first time in Q3, according to IDC. They accounted for 9.2% of all server revenues.

Revenues were up 42.6%; unit shipments up 31.7%.

By comparison, Windows server revenues grew 13.3% to $3.9 billion and accounted for 33.9% of the quarter's server revenues. Unit shipments of Windows servers were up 19.1%.

Unix server revenues declined 2.3% to $4 billion.

IDC found Linux deployments in both technical and commercial environments were strong.

HP maintained its top spot with 26.9% of the Linux market followed by IBM with 20.5% and Dell with 17.4%, but IBM is still ahead in revenues to Hewlett-Packard's number two.

IDC estimated IBM's total Q3 server revenues at $3.66 billion giving it 31.7% of the market compared to HP's $3.09 billion and 26.8% share. Year-over-year IBM is up from 31.4%, while HP declined from 27.5%.

However, in terms of unit shipped HP was first.

Total server unit shipments grew 18.7%.

Sun's server revenues were almost flat while its market share fell from 10.7% to 10.2%.

Dell boosted both its revenues and market share. Its revenues rose from $1.02 billion to $1.17 billion while its market share grew from 9.4% to 10.1% year-over-year.

IDC said worldwide server revenues grew 5.5% year-over-year to $11.5 billion in the quarter buoyed by volume servers.

Volume server revenues were up 18.2% and represented the market's primary growth engine.

Mid-range enterprise server revenues continued to decline falling 10.2% as mid-range workloads migrate to volume servers.

The high-end enterprise server market was up 1.9% marking its fourth consecutive quarter of revenue growth.

The blade server segment also showed heady growth with shipments increasing 44% year-over-year and revenues rising 22.5% sequentially. Blade servers accounted for $287 million in the quarter.

x86 server revenues grew 14.2% to $5.4 billion exceeding RISC server revenues for the third consecutive quarter.

According to IDC, the quarter was marked by acceleration in the x86-64 server volume ramp. It said 60% of AMD's Opteron servers shipped with Linux while Intel's Xeon EM64T servers were shipping mostly with Windows.

Top Five Corporate Family, Worldwide Server Systems Factory Revenue, Q3, 2004.

(Revenues in Billions)

Vendor Q3 2004 Revenue Market Share Q3 2003 Revenue Market Share Revenue Growth 3Q04/3Q03
IBM $3.66 31.7% $3.44 31.4% 6.3%
HP $3.09 26.8% $3.00 27.5% 2.9%
Sun $1.18 10.2% $1.17 10.7% 0.1%
Dell $1.17 10.1% $1.02 9.4% 14.1%
Fujitsu/Fujitsu Siemens $0.71 6.2% $0.68 6.3% 4.4%
Others $1.73 15.0% $1.6 14.7% 7.6%
All Vendors $11.54 100.0% $10.94 100.0% 5.5%

IDC's Worldwide Quarterly Server Tracker, November 2004

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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Most Recent Comments
Steadyprogress 11/29/04 09:48:46 AM EST

It's amazing to think that it is already 18 months now since Forester's famous "Linux Tipping Point" report, with its glowing promises of how Linux would be bringing "seductive Intel economics into the Unix heary of the data center" - these things take time.