IDC: Server market stabilizing as Dell gains share

Dell Computer Corp. was the only top-five vendor to post year-over-year revenue growth in the server market during the third quarter, according to research released Wednesday by International Data Corp. (IDC).

Worldwide server revenue was US$10.6 billion for the quarter, a 5.6 per cent decline over last year’s third quarter, during which businesses struggled with the aftermath of the Sept. 11, 2001, attacks in the U.S.

That 5.6 per cent decrease is the smallest year-over-year drop the server market has seen in the last two years, according to IDC, which hailed the slowing decline as a sign that the server market is stabilizing. Results in the fourth quarter should continue to improve, the research firm said.

Dell’s server revenue for the quarter climbed 7.5 per cent, to US$920 million worldwide, placing it fourth in market share based on revenue.

Leader IBM Corp., with nearly 30 per cent market share, saw its revenue slip 0.4 per cent, by IDC’s calculation, while number-two vendor Hewlett-Packard Co.’s revenue dropped 15.8 per cent, to US$2.88 billion. Sun Microsystems Inc. ranked third, with revenue down 3.4 per cent at US$1.28 billion.

IDC’s findings regarding Dell mesh with researcher Gartner Inc.’s third-quarter figures. [Please see Dell, IBM dominate flat third-quarter server market.]