HP Getting Closer to IBM in Server Revenue

Hewlett-Packard continued to gain ground on IBM in 2007 when it comes to server revenue, although Big Blue still managed to dominate all other system vendors, according to an analyst report.

In a report released Feb. 27, IDC analysts found that for 2007, worldwide server revenue topped $54 billion for the year, an increase of 3.6 percent compared to 2006 and the highest annual total since the market peaked at $61 billion in 2001. In the fourth quarter, server revenue grew 2.4 percent, to $15.7 billion.

A similar report from Gartner also valued the server market at $54 billion in 2007.

As the continuing arms race between the two top vendors ramps, IBM’s server revenue for the year topped out at $17.3 billion, an increase of about 1 percent over 2006. HP continued to gain on its rival, with system revenues hitting $15.4 billion in 2007, an increase of a little more than 8 percent.

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