HP servers still going strong

Hewlett-Packard remains number one in global server market

[email protected]

Hewlett-Packard (HP) has managed to hang onto its number-one spot in the global server market, despite dropping to second place in the EMEA ratings for the fourth-quarter of 2005.

According to the latest figures from analyst IDC, HP topped the growing 64-bit server space which now accounts for 80 per cent of all x86 server sales, as well as leading the overall x86 server segment in revenues and unit sales. Although HP retained overall leadership in the global server arena, IBM sneaked into first place in EMEA, with revenues of $1.9bn. This came thanks to a strong Q4 revenue surge of 60.5 per cent. IDC attributed the change at the top to sales of its zSeries.

The overall EMEA server market fell for the first time in Q4, after 10 consecutive quarters of revenue growth. IDC noted that revenues dropped by 4.4 per cent in Q4 2005 compared with Q4 2004, even though units shipped increased.

Nathaniel Martinez, programme manager at IDC’s EMEA server solutions team, said: “Recently corporate refreshes and renewed IT investment fuelled stellar market growth in the x86 server segment. This more than compensated for the tepid revenue performances seen in the Risc segment.

“However, declining average system prices and squeezed margins in the volume server space, combined with a receding mid-range and high-end server markets, implied growth could no longer be sustained in the EMEA server market in Q4 2005.”

John King, HP’s enterprise server business manager for the UK, said: “In the x86 space we have been shipping only 64-bit machines for over nine months, but finally the 64-bit applications are starting to arrive. Linux has been strong too. It’s an educated market these days. Linux implemented in the right scenario can bring lots of benefits.”

Within the server market, blade servers continued their strong growth pattern, with a 60.9 per cent revenue boost in Q4.

King added: “Blades are growing fast: it’s no longer a niche market. IDC claims it will grow by 54 per cent in 2006 in UK and today, HP controls 52 per cent of the market.” C

>> Further reading:

www.channelweb.co.uk/2148189