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HP Scores Upset in Blade Market; Volume Servers No Longer a Growth Engine

In Q4 for the first time in living memory HP took market share away from IBM in blades, a sacred Blue preserve

In Q4 for the first time in living memory HP took market share away from IBM in blades, a sacred Blue preserve.

According IDC's numbers put out Monday, HP pushed IBM off the blade pedestal and into the number two slot at the end of last year taking 41.9% of the revenues and leaving IBM with 37%. For the year IBM continued to hold the top position with 40% of the revenues and HP got 37.4%. The upset seems to be attributed to HP's new third-generation c-class chassis.

The total blade market, including x86, Itanium and RISC blades, was worth $788 million in Q4, representing 5.2% of the overall server market. Factory revenues were up 18.2% year-over-year and shipments increased 16.9%.

Worldwide factory revenues were up 5.2% year-over-year to $15.2 billion in Q4, representing the third consecutive quarter of positive growth, IDC said. For the full year, revenues were up 2% to $52.3 billion, the highest annual server revenue since the market peaked in 2000.

In Q4 IBM walked away with the Oscar in total server revenues of all classes claiming 37.9%, up 3.8% in factory revenues, to HP's second place 26.8%, up 5.1% thanks to its ProLiant boxes. Dell and Sun tied for third place with Sun up 24.4% to 9.7% and Dell up 2.4% for 9.4% of the revenue. Fujitsu and Fujitsu Siemens were up 2.8% to claim 4.1% of the revenues.

IDC said volume servers, up 2.1% year-over-year, were "no longer a catalyst for growth for the server market overall." The researcher said that Q4 was the first time in the 10 years it's been counting servers that both mid-range and high-end servers grew faster than their little x86 chums. Mid-range boxes were up 5.4% after four quarters of decline, and the high-end babies were up 11.5%. IDC attributed the shift to consolidation and virtualization.

IDC also found that in Q4 Linux servers, after two quarters in the single digits, returned to double-digit growth up 15.3% to $1.8 billion and now represent 11.9% of all server revenue, up a point year-over-year. However, IDC said, after an 18-month run in the double-digits Linux shipments dropped 0.8%, a fact it attributed to consolidation.

Windows server revenues - at 34.9% the largest single revenue segment - were up 9.4% in Q4 to $5.3 billion with units up 5.1%.

Unix systems were up 2.8% to $5.1 billion in the quarter, 33.5% of the total; z/OS mainframe revenues were up 5% to $1.7 billion, IBM's best showing in eight years; and Itanium boxes were up 71.5% to $1.1 billion, the first time the EPIC architecture has passed the billion-dollar mark.

IDC gives AMD 20% of the worldwide x86 server revenue for the third quarter in a row. x86 servers were up 7% in the quarter to $7.2 billion worldwide, but units were only up 1.1% to 1.85 boxes. And IDC said only IBM, HP and Sun outgrew the market with their factory revenues up 7.8%, 8.2% and a whopping 85.8% respectively. The research house awards HP 33.9% of the x86 revenues and lets IBM and Dell share second place with 20% each.

For the year, x86 server revenues were up 5.2% to $25.8 billion with units at 6.9 million up 7.4%.

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Virtualization News 03/05/07 04:34:30 PM EST

In Q4 for the first time in living memory HP took market share away from IBM in blades, a sacred Blue preserve. According IDC's numbers put out Monday, HP pushed IBM off the blade pedestal and into the number two slot at the end of last year taking 41.9% of the revenues and leaving IBM with 37%. For the year IBM continued to hold the top position with 40% of the revenues and HP got 37.4%. The upset seems to be attributed to HP's new third-generation c-class chassis. The total blade market, including x86, Itanium and RISC blades, was worth $788 million in Q4, representing 5.2% of the overall server market. Factory revenues were up 18.2% year-over-year and shipments increased 16.9%.