Feeds

Dell becoming ‘the 800lb gorilla’ of the server market

Sells more servers in US than Big Q during Q1

  • alert
  • submit to reddit

The essential guide to IT transformation

Dell saw almost 50 per cent growth in worldwide server shipments during the first quarter, and overtook Compaq as the top server seller in the US.

Big Q remains the world's biggest supplier of Intel platform servers. S hipments rose 13 per cent to 234,000 units, giving it 29 per cent of the market in Q1, according to Gartner Dataquest. The overall market for PC Intel-based servers grew 28 per cent to 810,000 shipments.

Dell was the second biggest server vendor, with sales growing 47 per cent to 174,000 units giving it 21.6 per cent market share.

IBM and Hewlett-Packard sold 174,000 and 113,000 servers respectively, giving them 21.6 per cent and 13.9 per cent market share. Their shipments grew 18 per cent and 36 per cent.

NEC had 3.7 per cent of the market with shipments up three per cent to 29,000.

In the US, Compaq lost its lead to Dell, which sold 94,000 servers and grabbed 38.3 per cent of the market. Compaq sold 79,000 units, giving it 32 per cent market share. This was a switch from Q1 2000, when Compaq had 38 per cent and Dell 28 per cent of the market.

IBM shipments totalled 31,000 in the US in Q1, or 12 per cent market share, while HP and Gateway nabbed 19,000 (eight per cent) and 5,000 (two per cent) respectively.

"Dell very consciously decided to take corporate gross margin down from 21 per cent to 18 per cent this year," said Todd Kort, principal analyst at Gartner Dataquest. They said to everyone: We're putting the heat on. See if you can follow."

According to Kort, Dell is sacrificing profitability in the short time, which is an "effective strategy and pays well in this particular period of time". But this will have a knock on effect on rivals. "If Dell lays off a few people, bigger companies have to lay off more," said Kort.

"It is becoming the 800-pound gorilla of the server market," he added.

In Western Europe, Compaq held onto its lead during the quarter, with 91,000 shipments giving it 37 per cent of the market. Dell had 39,000 sales, 16 per cent, HP 34,000 (14 per cent), IBM 33,000 (13 per cent) and Fujitsu Siemens 25,000 (ten per cent). Total server sales in Western Europe were 249,000. ®

Related Stories

Dell steals Compaq's crown
Compaq wields cost axe
Sun claws its way to top of server market

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.