HP Server Sales Match IBM After Compaq Merger

Both companies claimed almost 28 percent of the $10.5 billion market in the second quarter of 2002, according to market research firm IDC.

The global server market shrunk for the sixth straight quarter, with revenues dropping 16 percent, from $12.6 billion in the year-ago quarter.

HP's May 2002 acquisition of Compaq allowed it to pull even with IBM -- the first time Big Blue has seen a major challenger for the top position in the server market.

"The wide breadth of the combined Hewlett-Packard and Compaq server offerings allow Hewlett-Packard to compete head-to-head with IBM in all major segments of the server market," said Jean S. Bozman, vice president of Server research at IDC.

But while HP's market share dwindled even faster than the overall market, server sales at IBM, Sun Microsystems, and Dell beat the overall market, IDC reported.

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