HP Closes In on IBM in Server Revenues -Gartner

HELSINKI, Feb 22 (Reuters) – Hewlett-Packard closed in on IBMin server sales byvalue in 2007 and increased its lead in shipment volumes, research firm Gartnersaid on Friday.

IBM’s server sales grew one percent to $17 billion last year, giving it amarket share of 31.1 percent, down from 32 percent in 2006, while HP increasedmarket share to 28.3 percent, thanks to sales growth of 9 percent.

HP sold 2.64 million servers in 2007, up 17 percent from a year before,raising its share of market volume to 29.8 percent. The closest contenders –Dell, IBM and Sun– all lost marketshare when measured by volume.

Worldwide server shipments in 2007 increased 7.4 percent helped by the stronggrowth at HP, while global market revenues grew 3.8 percent in 2007, Gartnersaid.

"The fourth quarter climbed almost 11 percent in shipments and just under 3percent in revenues in spite of the fact that there have been concerns about aslowdown due to downturns in certain economic sectors of particulargeographies," Jeffrey Hewitt, research vice president at Gartner said.

(Reporting by Tarmo Virki; Editing by Quentin Bryar)