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  1. #1
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    2005 Q1 server market data, HP leads DELL by 80%

    Server Market Is Solid in Q1, Says Gartner

    http://www.itjungle.com/breaking/bn052505-story01.html


    by Timothy Prickett Morgan





    Perhaps the most significant numbers in the tables built by McLaughlin and his team are the ones for Hewlett-Packard, which almost matched Dell in overall server shipment growth in the quarter across all server types and within the X86 segment, which matched Dell in overall server revenue growth, and beat Dell in X86 server revenue growth by 4.5 percent. In the X86 server space, which accounted for 92 percent of shipments and 49 percent of sales in the first quarter of 2005, HP racked up 480,272 servers sold (up 16.2 percent) compared to Dell's 401,687 units (up 17 percent); HP's sales in the X86 space came to $2.063 billion (up 17.9 percent), compared to $1.32 billion for Dell (up 13.4 percent). "HP has created the broadest set of X86 offerings--towers, racks, and blades as well as Intel and AMD chips--and they have been poised to grow like this," said McLaughlin.

    IBM, the number three vendor in the X86 space, boosted sales by 12.6 percent to $975.3 million, followed by number four vendor, Fujitsu-Siemens, up 12.6 percent as well to $307.5 million. As IBM has begrudgingly indicated, it was somehow outfoxed by Dell in the X86 market in the first quarter, and only grew shipments by 8.6 percent--lower than the 11.7 rate for the entire X86 market. Sun Microsystems had very good growth of 177.9 percent, but of course it only shipped 13,358 machines. Total X86 server sales were $6 billion in the quarter, up 9.4 percent.

    On an operating system platform basis, Windows server shipments continued to dominate the market in the first quarter, accounting for 1.178 million units, about 69.6 percent of worldwide server shipments. However, Windows server shipments only grew by 7.5 percent in the quarter--not as fast as the market as a whole. Nonetheless, Windows machines, which are mostly X86 boxes (which means both 32-bit X86 and 64-bit X64 platforms in Gartner's lingo) but also include some Itanium machines, added up to $4.4 billion in sales, up 5.4 percent from this time last year.




    Linux, which is also predominantly sold on X86 platforms but is also sold on Itanium and a number of RISC and mainframe platforms, had the best growth in the quarter in terms of sales, with revenues up 38.8 percent to just under $1.5 billion. Shipments of Linux-based servers grew by 48.7 percent to 344,301 units, according to Gartner. On the current curve, it looks like by the end of 2006 the Linux market will cool (yet still outgrow the overall market) to around 2 million units a year, or about a quarter of the overall market. (It is very tough to predict such things, of course.)

  2. #2
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    Gartner: Server sales show modest growth




    Robert McMillan
    IDG News Service\San Francisco Bureau
    Updated: May 26, 2005 11:35 AM


    SAN FRANCISCO - Led by strong sales from market-leader IBM Corp. worldwide server sales were up 4 percent during the first quarter of 2005, according to research released Wednesday by Gartner Inc.

    Total server revenue for the quarter was US$12.33 billion, up from $11.84 billion during the first quarter of 2004. IBM, Hewlett-Packard Co. and Dell Inc. were the top three server vendors, with sales of $3.67 billion, $3.47 billion and $1.33 billion for the period.

    With a 16 percent rise in sales of "x86" servers, which use processors from Intel Corp.and Advanced Micro Devices Inc., (AMD) HP actually shipped the largest number of servers by a wide margin. HP shipped a total of 498,000 servers during the quarter, followed by Dell and IBM, which sold 402,000 and 183,000 systems, respectively.

    Sales of servers with AMD's Opteron processor accounted for 5.7 percent of the 1.6 million unit x86 market. This was a slight improvement from the 5.4 percent market share Opteron held during the previous quarter, but still far from AMD's stated goal of 12 percent market share by year's end.

    In total, 92,000 Opteron systems shipped during the quarter, led by HP, with just under 12,000 shipments, and Sun, which sold nearly 9,000 Opteron servers. The vast majority of Opteron sales, however, were made by smaller, lesser-known vendors.

    Intel's 64-bit Xeon processor accounted for 797,000 systems sold during the quarter.

    "Opteron is still a viable product," said Joseph Gonzalez, a Gartner analyst. "You can run a lot of your older applications on it. It's also a little bit lower-priced than some of the Xeon offerings," he said. "It's not going to make a huge inroad into Intel's sales, but it's going to bring in a lot of revenue for AMD."

    Unix sales were up slightly for the quarter, but IBM was the only one of the top three vendors to see its Unix business grow. Big Blue had Unix sales of $1.23 billion for the quarter, followed by HP, which had sales of $1.17 billion. Third-place Sun Microsystems Inc. saw its Unix sales drop from $1.21 billion to $1.13 billion, year over year.

    Despite marketing efforts to promote itself as an x86 vendor, Sun's overall revenues dropped as well during the period. During the first quarter of 2004 Gartner estimates it sold $1.22 billion in servers. For the most recent quarter, sales dropped to $1.17 billion

  3. #3
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    In the long run Dell's "INTEL ONLY" stance is going to hurt them. Especially when they're offering a product 20% slower than other vendors due to them using Intel chips. AMD is so far ahead of Intel right now in regards to performance.
    Linux junkie | steward.io

  4. #4
    Title says "2005 Q1 server market data, HP leads DELL by 80%", but once again no mention of that in your article.

    Have you taken any college courses on how to actually read this stuff? You should if you haven't... You're blatently misrepresenting those articles. Where do you even come up with this figure? 80%?

    In your own data IBM, HP, DELL are first, second, and third respectively... If HP has an 80% lead on Dell what lead does IBM have on HP and DELL? 120%? Are you talking revenue, sales, server units? Which division?

    I'm sorry man, but this is misleading...

    HP racked up 480,272 servers sold (up 16.2 percent) compared to Dell's 401,687 units (up 17 percent)
    Looks like Dell increased its server sales more than HP, even though HP earned more revenue.. What does this mean? HP's avg. selling price is higher than DELL. What does this tell you? Dell is a budget server solution. Whoa big surprise... Not to mention DELL is an Intel only shop...

    HP sells everything and only sold 80,000 more units.. What does that tell you? There's only < 80,000 units different in the number of Server sales despite the largest X86 selection.

    Intel's 64-bit Xeon processor accounted for 797,000 systems sold during the quarter.

    In total, 92,000 Opteron systems shipped during the quarter, led by HP, with just under 12,000 shipments,
    Exactly as I've stated, industry is hesistant to adopt opteron because its still too new... Long term viability has to be proven before its picked up by the early majority... As of now it's still early adopters who are buying...

    Sales of servers with AMD's Opteron processor accounted for 5.7 percent of the 1.6 million unit x86 market.

    "HP has created the broadest set of X86 offerings--towers, racks, and blades as well as Intel and AMD chips--and they have been poised to grow like this," said McLaughlin.
    Even with the broadest set of X86 Offerings, HP managed to sell 80,000 more units than Dell... When Dell is an Intel only shop... It doesn't take a genius to figure out Dell is more efficient... Especially considering HP also includes former Compaq clients....

    And you Don't include the possibility of DELL offering AMD... You know those numbers will change if that happened...

  5. #5
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    I was talking about revenue, HP had 2.1 billion revenue, dell 1.3, not exactly 80% more, more like 70% more.
    We know DELL sells a lot of PowerEdge servers for $249, yes two hundred and 49. Guess, they counted all these junk as servers.

    The 92000 figure is for Opteron systems only, we know these babies are real servers. Xeon had sales of 800,000.

    After two years, Opteron has a 10% mkt in servers, that's slow, but understandable, AMD had 0% share in server mkt before. Things are changing though. What you see is Q1 results. With the launch of dual core opteron, and HP's dl385, bl25, bl35 line, and supermicro's opteron line, AMD will be growing faster.

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  7. #7
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    Another factor is this: INTEL is engaging in a lot of illegal activity in stopping people from using AMD. Recently Japan's FTC found INTEL guilty of illegal behaviour, it required Sony, Toshiba, NEC to use INTEL only and 0 AMD, in return, these companies got big discounts as much as 50% and cash. As a result, AMD's mkt share dropped from 23% to 10%.
    INTEL has pleaded no contest to JFTC's ruling and agreed to cease its illegal behaviour in Japan. But the same is still happening around the other parts of the world

  8. #8
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    That article's title is very misleading.

    I agree with Dan. Let AMD win on the merits of price/performance and AVAILABILITY. I'm all for competition and the best product winning and feel many of us would use AMD if only the right vendor and price was available for rackmount servers offered with their chips.

    You can have the best product in the world (and there have been many in the computing industry) but if you can't get it distributed and sold someone like Microsoft is just going to run you over in the long run.

  9. #9
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    sshepherd made a good point, competition is very good for us, the way INTEL is doing things is to disallow people using a better technology, INTEL certainly has the money to pursuade vendors from going AMD. A few days ago, I saw 4 SuperMicro Opteron motherboards on Monarchcomputer.com, they are reasonably priced. Today, when I checked it again, those motherboards are no longer listed. We know Supermicro, like DELL, was an INTEL only house.

    A friend of mine worked a big DC, and he saw DELL opteron servers being tested months ago, but DELL is still 100% INTEL today. Why, they can't refuse the money INTEL gives....

    It's possible that INTEL, desperate as they are, giving a lot of cash to companies to stop AMD, as they did in Japan. Then AMD, can't earn any money and will go bankrupt, at the end, we will be using whatever INTEL gives--Itanium maybe.

  10. #10
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    AMD > Intel

    Intel & Dell needs to play fair.
    Linux junkie | steward.io

  11. #11
    After looking HP is not #1 IBM is. The key here is net revenue. Please take a financial analysis class.

    http://finance.yahoo.com/q/co?s=HPQ
    HPQ CAJ DELL IBM
    Net Income (ttm): 3.59B 3.24B 3.25B 8.49B

    The difference in net income is marginal, and IBM's net revenue is almost all competitors combined.

    DIRECT COMPETITOR COMPARISON

    HPQ CAJ DELL IBM Industry
    Market Cap: 65.67B 48.59B 99.84B 124.79B 145.84M
    Employ_ees: 151,000 N/A 55,200 348,052 889
    Qtrly Rev Growth (yoy): 7.20% 5.70% 16.00% 3.30% 0.00%
    Revenue (ttm): 83.30B 32.32B 51.05B 97.03B 144.68M
    Gross Margin (ttm): 23.85% 49.17% 18.48% 37.51% 40.53%
    EBITDA (ttm): 6.78B 6.89B 4.81B 16.69B -140.00K
    Oper Margins (ttm): 5.24% 15.76% 8.74% 12.09% -19.10%
    Net Income (ttm): 3.59B 3.24B 3.25B 8.49B -638.22K
    EPS (ttm): 1.205 3.648 1.274 5.001 N/A
    P/E (ttm): 18.82 15.02 31.87 15.47 20.10
    PEG (5 yr expected): 1.50 N/A 1.08 1.56 1.50
    P/S (ttm): 0.79 1.50 1.94 1.28 1.28

  12. #12
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    Ikeo, look, I said it clearly, it was an x86 server comparison.
    IBM sells a lot of main frames.

  13. #13
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    Why do you guys keep feeding the trolls? If you ignore them they go away, really!

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