Rapid Linux growth boosts server market

Rapid Linux growth boosts server market

The number of servers sold worldwide increased by 27.1% in the first quarter of 2004 to 1.57 million units, with a clear move by users towards low-end servers and the Linux operating system, said research company Gartner.

The growth in the low-end market meant that server hardware revenues only rose by 9.3% compared with the same period last year, to $11.8bn.

Revenue of Linux-based server hardware rose 57.3% over the period, while commercial Unix server revenues fell 2.3%, Gartner said.

IBM remains the leader in terms of server hardware revenues, with an estimated 30.7% of the market. In terms of unit shipments, Hewlett-Packard led IBM, posting a 28.5% share.

Dell has now become the third-largest seller of server hardware by units sold, and is the fastest-growing of the leading suppliers, increasing unit sales by 38.4% and revenue by 24.8% over the period.

Sun Microsystems felt the impact of the move to lower-priced servers - its unit shipments rose 26.5% to 76,800 units while its revenues from those sales fell 12.5% to $1.22bn.

Thus, over the past year, the average selling price of a Sun server has fallen 31% from $22,920 to $15,860.

David Legard writes for IDG News Service

Read more on Server hardware

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.