Server sales keep on rising

Worldwide server sales showed strong growth in the first quarter of 2005, rising 4.1% to $12.3bn (£6.64bn) compared with $11.8bn...

Worldwide server sales showed strong growth in the first quarter of 2005, rising 4.1% to $12.3bn (£6.64bn) compared with $11.8bn for the same quarter last year, according to analyst Gartner.

Gartner said that while the value was higher than last year, overall growth wasn’t. Last year’s first quarter saw growth of 9.3% compared with the previous year.

However, the analyst said 2004’s rapid growth spurt was helped by a rush to newer blade servers and enterprises upgrading systems they had bought in 1999 and 2000. Gartner said this year’s first quarter was still “solid, healthy growth”.

Despite losing 1% in market share, IBM held on to top market spot with 29.8% of sales, ahead of HP on 28.1%, which increased its share from 25.9% a year ago. Dell strengthened its third place by going up almost 1% to 10.8% of sales.

Overall, Linux-based server sales increased by around 40% to $1.5bn. Sales from blade servers jumped from $208.7m to $426.3m in the quarter, with IBM leading this segment.

Gartner said server sales for the full year were expected to increase by 5%.

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