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Gartner Says Server Market Grows, But Sun Stumbles

The overall server market showed reasonable growth in the second quarter, but Sun Microsystems Inc. failed to keep pace with the other top three vendors, posting a decline in revenues, a market research firm said Thursday.

The worldwide market increased in the quarter ended June 30 by 4.7 percent to $12.2 billion, compared with $11.6 billion for the same period a year ago, Gartner Inc. said.

Despite the lift in the market, Santa Clara, Calif.-based, Sun saw its revenues drop by 4.5 percent from a year ago to $1.5 billion. The company's overall market share fell to 11.94 percent from 13.09 percent a year ago.

"They continue to lose market share due to the fact that they don't have a broad product line like their competitors," Gartner analyst Michael McLaughlin said.

Armonk, N.Y.-based, IBM, the market leader, kept pace with the overall market, posting a 4.6 percent spurt in the quarter to $3.7 billion and a 30.48 percent market share. No. 2 Hewlett-Packard Co., based in Palo Alto, Calif., grew its revenues year-to-year by 11.9 percent to $3.5 billion, or a 27.17 percent share.

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