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HP dominates a server market that has seen 0.8 percent growth

Gartner finds growth for the first time in three years
Wed Aug 27 2014, 14:10
Worldwide servers sales have risen

GARTNER'S LATEST server sales figures show market growth of 0.8 percent in Europe in the second quarter from the prior quarter.

Slight but significant, the 0.8 percent sales growth is the first increase in sales in around 10 quarters. Gartner said that associated revenues have also grown by 3.8 percent. It found that HP dominated the market with IBM and Dell in second and third place, adding to HP's already positive month.

The analyst added that while growth has been good, the industry must keep pushing forward.

"The second quarter of 2014 marks a key milestone in the server market for many vendors, as both shipments and revenue grew for the first time since this period in 2011," said Gartner research director Errol Rasit.

"Despite the steady improvement in the server market, these positive results highlight the end of a slump, rather than a return to growth. Server providers must continue to ensure that a focus on growth remains a top priority."

HP had over a third of the shipments with 34 percent, and pulled in a quarterly revenue of $1.12bn. After a short hop downwards we find IBM with its 22 percent share and around $700m in revenues. Third placed Dell made do with 15 percent market share and somewhere around $500m in revenues.

Rounding out the top five server venders were Oracle and Fujitsu and each of these had around 6.5 percent of the market. Of the two Oracle does the most business and pulled in revenues of $212m to Fujitsu's $207m.

Others, which took the remaining 15 percent or so, are not broken down, but had total revenue of approximately $484m.

Rasit expects the sales growth to carry on through the year, but again said that customers are in command.

"Underlying demand is increasingly positive, but server customers are increasingly discerning regarding technology choice and cost," he added. µ


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