IDC: Server market stabilising as Dell gains share

IDC: Server market stabilising as Dell gains share

Dell Computer was the only top-five vendor to post year-on-year revenue growth in the server market during the third quarter, according to research released by IDC on Wednesday.

Worldwide server revenue was US$10.6 billion for the quarter, a 5.6 per cent decline over last year's third quarter, during which businesses struggled with the aftermath of the September 11 attacks in the US.

That 5.6 per cent decrease is the smallest year-on-year drop the server market has seen in the last two years, according to IDC, which hailed the slowing decline as a sign that the server market is stabilising. Results in the fourth quarter should continue to improve, the research firm said.

Dell's server revenue for the quarter climbed 7.5 per cent, to US$920 million worldwide, placing it fourth in market share based on revenue.

Leader IBM, with nearly 30 per cent market share, saw its revenue slip 0.4 per cent, by IDC's calculation, while number-two vendor HP's revenue dropped 15.8 per cent, to US$2.88 billion. Sun Microsystems ranked third, with revenue down 3.4 per cent at US$1.28 billion.

IDC's findings regarding Dell mesh with researcher Gartner's third-quarter figures, released in October. Calculating according to unit shipments rather than revenue, Gartner reported 18.1 per cent growth for Dell worldwide amid declines for IBM and HP.

Sun, however, posted growth, according to Gartner's data, with unit shipments up 17.5 per cent year-on-year worldwide.

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