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Figures released by Dataquest last month showed that unit shipments of servers were flat in the first quarter compared with the same quarter of 2001, highlight the way prices for server hardware have fallen.
IBM held on to its crown for server revenue market share, accounting for 27.8% of worldwide sales in the first quarter of 2002. It gained share from the first quarter of 2001, when it held 25.8% of the market, according to Shahin Naftchi, senior analyst for servers at Dataquest.
Sun Microsystems trailed IBM in the first quarter of 2002 with 17.4% of the market, while Hewlett-Packard and Compaq Computer held 12.8% and 12.9%, respectively. HP's acquisition of Compaq was not completed until the second quarter.
Although each of these companies reported a decline in revenue year on year, IBM saw the smallest drop, with server revenue falling 8.7% from the first quarter of 2001. The other three top vendors saw declines in the double digits, the research company said.
Compaq maintained its number one position in the market for Intel processor based servers, with 25.2% of the market, Dataquest reported.
HP had a stunning 202.8% gain in revenue from the sale of Linux-based servers in the first quarter of 2002 compared with the same quarter last year. However, its 4.7% market share in Linux servers by revenue was the smallest among the top four vendors, and HP actually lost 2.5% of share from the first quarter of 2001.
Meanwhile, IBM rose to become the number-one seller of Linux servers based on revenue, with 31.5% of the market. The company outpaced Dell, which held the number one seat in the first quarter of 2001. IBM's market grab was mainly because of its inclusion of Linux in its big-ticket products, Naftchi said.
"IBM is putting Linux on the mainframe, so in terms of revenue it is high," she said.
Based on the number of Linux server units shipped, Compaq had the lead in the first quarter of 2002 with 23.8% of the market, Naftchi said.