Gartner: North America Propels Server Growth, With HP Leaving Dell Behind

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HP has been pushing hard against Dell and Cisco, and it is reaping the rewards, said Chris Case, president of Sequel Data Systems, an Austin, Texas-based solution provider and long-term HP partner.

"HP has definitely put some programs in place," Case said. "And Meg [Whitman, HP CEO,] is definitely not shy about saying HP needs to go after Dell and Cisco. And they are, with some aggressive incentives that are working."

Cisco in the last couple of quarters seeded several customers with empty blade server chassis at no cost, making it easy for customers to decide to buy Cisco blades, Case said. "We saw that a lot," he said. "But last quarter, they seemed to pull back from that program. It didn't seem to be a big factor in their competition with HP."

HP, however, in September rolled out HP OneView, a management software designed to go head-to-head against Cisco's management capabilities, Case said.

"HP did well with OneView," he said. "We did a lot of demos and NDA presentations that might have helped HP stave off Cisco."

The No. 4 spot for North America server shipment went to IBM, where server shipments fell 32.8 percent to just under 40,000 units. That translated into a revenue drop of 16.8 percent over last year to $1.0 billion, which was still high enough to give it a solid third place, Gartner's Hewitt said.

IBM, which also saw a 18.9 percent drop in worldwide server revenue and a 28 percent drop in worldwide server shipments over last year, suffered from a double-whammy, Hewitt said.

The first factor was the uncertainty caused earlier this year by IBM's consideration of a move to sell part of its server business to Lenovo. "The data center market is still conservative," he said.

Part of that uncertainty also stemmed from concerns, particularly from China, over alleged spying by the U.S. National Security Agency (NSA), Hewitt said.

"China has reinvigorated its internal infrastructure, partly as a result of NSA spying activities," he said. "Customers there are asking 'Can we trust you?' And customers there are part of the government."

No. 5 in the North American market is SGI, with shipments of over 22,000 units, up 26.8 percent over last year. SGI server revenue was just over $82 million, up 10.3 percent, to give it the No. 6 spot in sales, Gartner reported.


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