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PRESS RELEASES
2006 Press Releases


 Back to 2006 Press Releases


STAMFORD, Conn., May 23, 2006 - Worldwide server shipments for the first quarter of 2006 increased 13.7 percent over the same quarter last year, while worldwide server revenue for the same period remained flat, according to Gartner, Inc.

Worldwide server revenue totaled $12.35 billion in the first quarter of 2006, compared with worldwide revenue growth of $12.34 in the first quarter of 2005. Worldwide server shipments totaled nearly 2 million units in the first quarter of 2006, up from 1.7 million units in the same period last year.

"The x86 server portion of the market continues to be the strongest segment," said Jeffrey Hewitt, research director at Gartner. "x86 servers remain as the leading server choice for meeting ongoing Web-related growth while other segments have started the year in a less-positive mode."

"RISC-Itanium Unix servers fell just 0.9 percent in shipments for the quarter but dropped a more significant 5.1 percent in revenue. The decline at the high end and the replacement at the low end with Linux on x86 servers continue to put negative pressure on this portion of the market," Mr. Hewitt said. "The blade segment of the market displayed strong growth again, with volumes increasing 46 percent over the same period last year. IBM holds the leading market position in blade servers in volume and revenue terms."

IBM continued to lead the worldwide server market based on revenue (see Table 1). However, the company exhibited a revenue decrease of 3.7 percent in the first quarter, while the total market remained flat for the same period. IBM's revenue decline was driven primarily by drops in its i, p, and z product lines, but its x86-based server product lines outperformed the market, growing 11 percent in revenue for the quarter to provide a degree of counterbalance to the decline.

Table 1
Worldwide: Server Vendor Revenue Estimates for First Quarter of 2006 (U.S. Dollars)
Company 1Q06 Revenue 1Q06 Market Share (%) 1Q05 Revenue 1Q05 Market Share (%) 1Q05-1Q06 Growth (%)
IBM 3,534,802,081 28.6 3,668,863,909 29.7 -3.7
Hewlett-Packard 3,456,922,254 28.0 3,448,175,694 27.9 0.3
Dell Inc. 1,306,029,983 10.6 1,333,031,283 10.8 -2.0
Sun Microsystems 1,298,889,283 10.5 1,206,673,421 9.8 7.6
Fujitsu/Fujitsu Siemens 765,380,569 6.2 886,492,936 7.2 -13.7
Other Vendors 1,987,282,939 16.1 1,801,599,480 14.6 10.3
Total 12,349,307,109 100.0 12,344,836,723 100.0 0.0
Source: Gartner Dataquest (May 2006)

In server shipments, Hewlett-Packard retained its lead in the first quarter and posted yearly shipment growth of 8 percent (see Table 2). However, this was lower than the overall industry shipment increase of 13.7 percent. While remaining product lines exhibited shipment declines, HP's ProLiant servers grew 8.3 percent, and HP Integrity servers pushed ahead with strong double-digit growth of 29.9 percent for the quarter. These shipment contributions helped bring HP's revenue results in line with the overall market.

Sun Microsystems returned to server revenue growth for the first time in almost two years, driven by increases in its UltraSPARC and its Opteron-based server revenue. Dell, on the other hand, while posting a 7.1 percent shipment growth for the quarter, suffered an atypical revenue drop of 2 percent for the period.

Table 2
Worldwide: Server Vendor Shipments Estimates for First Quarter of 2006 (Units)
Company 1Q06 Shipments 1Q06 Market Share (%) 1Q05 Shipments 1Q05 Market Share (%) 1Q05-1Q06 Growth (%)
Hewlett-Packard 538,201 27.1 498,203 28.5 8.0
Dell Inc. 431,445 21.7 402,669 23.0 7.1
IBM 298,526 15.0 250,194 14.3 19.3
Sun Microsystems 87,953 4.4 81,331 4.7 8.1
Fujitsu/Fujitsu Siemens 75,777 3.8 72,163 4.1 5.0
Other Vendors 554,977 27.9 442,843 25.3 25.3
Total 1,986,879 100.0 1,747,403 100.0 13.7
Source: Gartner Dataquest (May 2006)

Additional information is available to subscribers of Gartner Dataquest's Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, sub brand, CPU type, CPU group, Max CPU, platform, price band, operating systems and distribution channels.


CONTACT:
Christy Pettey
Gartner
(408) 468-8312
christy.pettey@gartner.com


About Gartner:
Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for its clients to make the right decisions, every day. Gartner serves 10,000 organizations, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,700 associates, including 1,200 research analysts and consultants in 75 countries worldwide. For more information, visit 
www.gartner.com.



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