Michael Dell: HP Server Share Losses Are 'Staggering'

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Dell Founder and CEO Michael Dell Friday said the data is indisputable: Dell is gaining server share from rival Hewlett-Packard at a "staggering" clip even as the company moves to close its $24.4 billion leveraged buyout.

"There is no denying the facts," boasted Dell in an interview with CRN after reviewing preliminary data from market researcher IDC that showed his company gaining first-quarter unit server share both in North America and worldwide. "HP is losing share at a staggering rate, and they are losing it to Dell," Dell said.

The IDC data comes three days after HP vehemently disputed preliminary server unit market share data from Gartner that showed Round Rock, Texas-based Dell gaining worldwide unit server share. HP, in fact, had pointed to IDC data as the "industry standard" in an attempt to downplay the Gartner data.


[Related: Dell Trumpets Q1 Server Gains, HP Disputes Data]

"He doth protest too much," said Dell, referring to claims from Jim Ganthier, vice president of global marketing in HP's server organization, that the Gartner data would change when final numbers are released later this month. "Now you have your IDC data. Look, we gained the most share and HP lost the most share [during the quarter according to IDC]. Customers are choosing Dell over HP in record numbers. The data is real clear. You can talk all you want. The facts tell the story."

Dell maintained its positions as the No. 1 server unit vendor in the North American market and No. 2 worldwide. HP is the No. 1 server vendor on a worldwide server unit basis and No. 2 in North America, according to IDC.

IDC's preliminary data shows Dell grew its first-quarter North American server shipments by 9.9 percent, while HP's dropped 18.9 percent.

Dell's unit share of the North American market climbed to 35.7 percent in the first quarter, up from 31.7 percent during the same quarter a year ago. HP's unit share dropped to 28.2 percent, down from 34.0 percent in the year-ago quarter.

On a worldwide basis, Dell's first-quarter server unit shipments grew 5.7 percent while HP's declined 15.4 percent compared to the previous year, according to IDC.

IDC measured HP's worldwide server unit share for the quarter at 30.9 percent, down from 35.3 percent a year ago, while Dell's worldwide server unit share climbed to 27.8 percent, up from 25.4 percent a year ago.

HP said in a prepared statement that it remains the worldwide market share leader. "One quarter does not make a trend," said the Palo Alto, Calif.-based company in a statement supplied to CRN. "We've been the leader for 17 years and now 68 quarters (according to the IDC preliminary report). HP continues to be at the forefront of the data center evolution, accelerating the pace of innovation and industry-leading server technology for our customers (e.g. Moonshot, SDN, CloudSystem, 3Par)," according to the HP statement.

The first-quarter server data is critical because it is one of the first third-party data points that measures Dell's enterprise solutions performance since the company announced the blockbuster buyout on February 5.

NEXT: Dell Credits Channel With Server Gains

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