IBM Demonstrates Increased Server Market Momentum in Second Quarter

Records Largest Rate of Server Revenue Increase in Industry; Captures Record Number of Competitive System Displacements
(PresseBox) (ARMONK, NY, ) IBM (NYSE: IBM) today announced continued momentum in the worldwide server market, with market share gains reported by a major analyst firm and increased competitive displacements in the second quarter of 2011.

According to IDC’s Worldwide Quarterly Server Tracker, IBM led in factory revenue gains to achieve 30.5 percent market share in the second quarter of 2011, compared with HP’s 29.8 percent share.

IBM grew server revenue by 24.5 percent year over year – better than the overall market growth of 17.9 percent – gaining 1.6 points of share over the same quarter in 2010. In addition, IBM was again named the market share leader by revenue in the UNIX® server market by IDC, gaining 5.2 points of share year over year with IBM Power Systems™ to achieve 47.4 percent market share, while competitors lost share. In the x86 market, IBM System x® achieved a growth rate of 15.3 percent year over year.

IBM continued to lead the market for servers costing more than $250,000, attaining 69.5 percent factory revenue share in the quarter, led by the continued strength of the IBM zEnterprise™ mainframe introduced last year. According to IDC, this was the fourth consecutive quarter of revenues over $1 billion for IBM System z® and systems running the z/OS operating platform accounted for 9 percent of all server revenue in 2Q11.

Competitive Displacements

IBM announced it had a record 847 competitive displacements in Q2 2011 for servers and storage systems, including 253 from Oracle/Sun and 248 from HP. IBM Power Systems achieved 334 client displacements in Q2 – about two-thirds (210) displaced Oracle/Sun, while the remaining third (110) displaced HP. Since IBM established its migration program five years ago to help clients move to IBM systems and began tracking competitive wins in 2006, there have been 7,210 competitive displacements to IBM servers and storage.


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