November 25, 2004

Dell Overtakes Sun in Server Sales

SAN JOSE, Calif. (AP) -- Computer giant Dell Inc.'s server sales rose in the third quarter, overtaking Sun Microsystems Inc. for the No. 3 position, according to a Gartner Inc. research report released Wednesday.

Dell's worldwide server revenue jumped to $1.16 billion, a 17 percent increase over the same period last year. By comparison, Sun's total server sales fell 2.7 percent to $1.13 billion, according to Gartner.

Rival research firm IDC, however, showed Sun in the No. 3 position, with $1.176 billion to Dell's $1.170 billion. IDC also reported Sun's total server revenue grew 0.1 percent, while Dell's jumped 14.1 percent.

Both research firms placed International Business Machines Corp. as the No. 1 server maker in terms of worldwide revenue and market share. It was followed by Hewlett-Packard Co. as No. 2 on both lists.

For the entire industry, Gartner reported third-quarter sales of $11.82 billion, up 6 percent from last year. IDC's overall revenue figure was $11.55 billion, up 5.5 percent from a year earlier.

Servers are computers that handle tasks like serving Web pages and running network applications. Though home PCs are capable of acting as servers, they're more commonly found in businesses and agencies. Server sales are a strong indicator of corporate technology spending.