HP, IBM Share Top Spot in Server Market

From DailyTech: The consumer computer market isn’t the only place where computer sales are hurting. In the enterprise, space sales of server systems are dropping as well. Businesses are holding off on upgrading servers as profits aren't able to keep up with traditional upgrade cycles when it comes to enterprise computing.

The latest numbers from research firm IDC are out for the server market covering Q1 2009. According to the numbers, the top spot in the server market is shared by two firms -- HP and IBM -- each holding 29.3% of the server market. Dell sits below IBM and HP with 11% of the server market. Following them are Sun Microsystems and Fujitsu with 10.3% and 6.7% of the server market respectively.

No matter where the firms sit in the shipment rankings, all saw revenues decline over the quarter with eWeek reporting revenue drops of between 18.8% and 31.2% compared to the same quarter of 2008.

IDC analyst Matt Eastwood said, "Market conditions worsened in all geographic regions during the first quarter as customers of all types pulled back on both new strategic IT projects and ongoing infrastructure refresh initiatives. Most enterprise organizations are deferring new IT procurements and instead focusing on extending server lifecycles and improving existing asset utilization."

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