Dell Quietly Gains in Server Market - TheStreet

SAN FRANCISCO - While IBM (IBM) - Get Report and Hewlett-Packard (HPQ) - Get Report scuffled over server market share in the second quarter, Dell (DELL) - Get Report quietly made gains.

With 12.2% growth year over year for the quarter, all leading vendors sold more equipment, but new models shifted the market share balance, according to new data from Gartner.

H-P grew total unit volume by 8.7% as sales of its blade servers soared, but the company lost 1% of share on volume. Likewise, Big Blue shipped 4.7% more servers and grew server share by revenue with the launch of its pricey new Series z mainframe, but lost ground in units shipped.

Meanwhile, Dell picked up 2.4% of server share by units shipped and 1% by revenue during the second quarter.

H-P remains the leading vendor by volume with 30.2% of the market at just over 700,000 servers shipped, while IBM still commands the top spot in dollar terms with 31.2% of share, or $4.32 billion, in revenue.

Sun Microsystems

(JAVA)

lost half a percent of market share by units shipped and 1.6% by revenue. But the company grew its volume of industry-standard x86 servers by 22%, while x86 revenue increased 7%.

As businesses move to virtualize their data centers, sales of x86 servers jumped 13.7% year over year, according to Gartner. Virtualization enables companies to make more efficient use of servers, drastically reducing their equipment and power costs.

Dell led the way in x86 growth, shipping 24% more of the servers than the same period of last year and boosting revenue 15%. H-P grew x86 shipments by just over 9%, while IBM shipped almost 7% more x86 servers.

H-P is fast claiming the market for blades, a type of x86 server. The company gained 3.6 points for 45.2% of the blade market, according to Gartner.

In the high-end mainframe and UNIX category, only IBM gained on volume, growing shipments by 1.8% to 23,074 servers. IBM's mainframe revenue grew 30% year over year to $1.47 billion.

According to IBM, the z10 mainframe has the capacity of 1,500 x86 servers.