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Gartner: Server Sales Rock Steady

Modern servers are still a growing component of next-gen data centers, according to new research from Gartner Inc. (see Server Sales Are Up).

About 1.6 million servers shipped in the second quarter of 2004, compared to 1.3 million a year ago, Gartner says. The servers are worth more than $11.5 billion to the industry, up 7.7 percent from last year's revenue of $10.7 billion.

"This is the 11th quarter in a row we've had positive year-over-year growth. So we're definitely coming out successfully from the dotcom bust," says Michael McLaughlin, principal analyst at Gartner.

IBM Corp. (NYSE: IBM) and Hewlett-Packard Co. (NYSE: HPQ) are still the dominant players. Big Blue earned $3.54 billion from servers in the second quarter, while HP took in $3.15 billion. Sun Microsystems Inc. (Nasdaq: SUNW) trailed at $1.5 billion, and Dell Inc. (Nasdaq: DELL) sold $1.13 billion worth.

But in units shipped, the story is different. HP sold more than 463,000 servers in the quarter, blowing away Dell's 338,000 and IBM's 239,000. Sun shipped about 90,500 units.

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