Dell regains traction in server market

Framingham (MA) – The global server market has returned to sizeable growth in the second quarter of this year. Especially Dell made progress, increasing its revenue by more than 20% over last year.

According to a revenue estimate released by IDC, the worldwide server market grew 6.3% year over year to $13.1 billion in the second quarter of 2007. After three years of slowing unit shipments growth, server shipments grew 6.1% year over year in Q2 07 driven by an improved refresh cycle and an expansion of new distributed computing workload deployments across the market.

Once again, volume (x86) servers were the driving force in the market with revenue growth improving to 11.0% year over year. Revenue for midrange enterprise servers increased 0.2% year over year and the high-end enterprise server market showed a 1.7% increase year over year.

On a vendor basis IBM kept its# 1 spot in the worldwide server systems market with 31.0% market share in factory revenue for Q2 07, growing factory revenue by 6.4% year over year. HP stayed in #2 with 28.2% share for the quarter, growing revenue 8.0% compared to Q2 06. Sun did not quite keep the pace with 5.6% revenue growth and 13.1% of the market. Dell remained in fourth, but outgrew all of its major competitors with revenues climbing by 20.2% and a market share that increased from 10.3 to 11.6%.