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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 26.64+2.7%Nov 5 3:59 PM EST

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From: Lynn5/23/2008 8:04:18 AM
   of 4345
 
05/22 18:18 =DJ H-P Passes IBM To Become No. 1 In Server Revenue - Gartner

By Ben Charny Of DOW JONES NEWSWIRES

SAN FRANCISCO (Dow Jones)--Hewlett-Packard Co. (HPQ) has passed International Business Machines Corp. (IBM) to become the No. 1 server seller in the world based on revenue, market data provider Gartner reported Thursday.

Meanwhile, Dell Inc. (DELL) saw shipments of its servers increase 15% for the year's first three months, which is the fastest of any of its competitors, Gartner also reported.

Servers are an essential component of business computer infrastructure, and thus are considered a litmus test of business IT spending. Gartner said Thursday that overall server shipments increased 7.6% from last year, with overall revenue rising a tepid 4.3% to $13.6 billion. The growth was driven by emerging markets and build-outs of more Web data centers, Gartner said.

H-P server sales between January and March generated $4 billion, or a 29.6% share of the overall server spending during the quarter, Gartner said. Strong sales of H-P's ProLiant and Integrity lines fueled the growth, and offset losses by H-P's lesser-selling lines.

IBM slipped to the No. 2 slot based on revenue by generating $3.9 billion in the quarter, which represents a 28.9% share of overall server spending and is down slightly from IBM's first-quarter year-ago share.

Dell servers shipped jumped 15.8% during the quarter, while Dell server revenue also jumped by about 6% to $1.6 billion.

-By Ben Charny, Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com
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