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Wednesday, May 29
Global server sales fell 5% Y/Y in Q1, says Gartner. That's a reversal from Q4's 5% growth, and...
Global server sales fell 5% Y/Y in Q1, says Gartner. That's a reversal from Q4's 5% growth, and evidence of both weak IT spending and a shift towards cheaper hardware. #1 IBM, whose hardware unit had an ugly Q1, saw its revenue share fall 250 bps Y/Y to 25.5%. #2 H-P (HPQ), hurt by crumbling Itanium server demand, saw its share fall 280 bps to 25%, and #5 Oracle (ORCL), hit hard by plunging UNIX server sales, saw a 130 bps drop to 4.6%. But #3 Dell's (DELL) share rose 310 bps to 18%, and Cisco (CSCO) cracked the unit share top-5 at 2.3%. The buying habits of Internet companies led non-top-5 vendors to make up 22% of sales, up 370 bps. Sales of x86 servers (mostly INTC-based) grew 1.8%, down from Q4's 6.6%. (IDC's Q4 data)