x86 Industry Standard Server Market Dynamics

Growth in the x86 server market accelerated slightly in 4Q06, growing 7.0% in the quarter to $7.2 billion worldwide, its fastest growth rate in five quarters.

However, unit shipment growth continued to moderate, growing a modest 1.1% year-over-year to 1.85 million servers as customers continued to consolidate their IT infrastructures.

IBM, HP and Sun were the only top 5 server vendors to outgrow the market in 4Q06 – growing factory revenue 7.8%, 8.2% and 85.8% respectively – and gaining x86 market share in the process.

HP led the market with 33.9% revenue share and IBM and Dell tied for second place with each vendor securing 20% revenue share. For the full year 2006, worldwide x86 server revenue grew 5.2% to $25.8 billion, while worldwide x86 unit shipments grew 7.4% to 6.9 million units.

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