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Server Market Grows; Linux Revenue Tops $1 Billion: Page 2 of 3

IDC said servers running the Linux open-source operating system posted the ninth consecutive quarter of double-digit revenue growth, increasing 42.6 percent to capture 9.2 percent of the overall market and surpass $1 billion for the first time. HP remained the leader in the Linux market with a 26.9 percent market share, followed by IBM, 20.5 percent; and Dell Inc., 17.4 percent.

Low-cost, or volume, servers, which include Windows and Linux on x86 processors, represented the primary growth engine, posting an 18.2 percent revenue increase, IDC said. Revenues from midrange servers declined 10.2 percent, as companies migrated to volume servers. High-end servers recorded a 1.9 percent increase, reflecting renewed spending among large companies.

Revenues from servers based on Microsoft Corp.'s Windows operating system increased 13.3 percent to $3.9 billion, accounting for 33.9 percent of the overall market. Unix servers posted a 2.3 percent revenue decline from a year ago to $4 billion.

The market also showed accelerated adoption of servers powered by 64-bit x86 processors, reflecting a movement away from 32-bit servers, IDC said.

The market for blade servers gained 22.5 percent in the quarter to $287 million, and is on pace to top $1 billion, IDC said. Blades are low-cost servers that plug into a rack that's designed to make it easy to swap or add servers.