Windows Servers Gain Over Unix

by CXOtoday Staff    May 31, 2005

Microsoft Windows servers showed strong growth, as revenues and unit shipments grew 12.3% and 10.7% respectively year over year. Significantly, quarterly revenue of $4.2 billion for Windows servers represented 34.4% of overall quarterly factory revenue, pulling even with quarterly revenue in the Unix server market, according to IDC’s Worldwide Quarterly Server Tracker.

Unix servers experienced 2.8% revenue growth year over year and 5.0% unit shipment growth over 1Q04. Worldwide Unix revenues of $4.2 billion for the quarter, coupled with revenue and shipment growth, reflect continued IT investment in this server market segment.

Factory revenue in the worldwide server market grew at 5.3% year over year to $12.1 billion in the first quarter of 2005, marking the eighth consecutive quarter of positive overall revenue growth.

Volume server revenue grew 15.6% year over year and continues to represent the primary growth engine for the server market overall. Revenue for midrange enterprise servers grew 6.1% year over year, marking the second consecutive quarterly increase in that segment. IDC believes this may reflect increased IT spending to run more scalable workloads and consolidation/virtualization initiatives than can be deployed onto volume servers.

Conversely, the high-end enterprise server market, which grew from the fourth quarter of 2003 through the third quarter of 2004, declined 13.9% year over year, its second consecutive quarter of reduced spending. One factor in this drop could be continued price compression, which reduces average sales prices for servers from the high-end enterprise into the midrange enterprise space.

Meanwhile, IBM held on to its top ranking as HP moved into a statistical tie for number 1 in the worldwide server systems market with 28.3% and 27.6% factory revenue share respectively.

IDC’s Worldwide Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis.