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Server Shipments Up 24 Percent

Server sales revenues worldwide increased about 8 percent in the second quarter of 2004 over the same period last year, a Gartner analyst said Wednesday, while the number of systems shipped grew three times as much.

"Every region showed positive year-to-year growth in revenue," said Mike McLaughlin, a Gartner principal analyst. Globally, server revenues topped $11.5 billion for the quarter.

Long-time leader IBM retained its number one spot in revenues, accounting for $3.5 billion in sales and a 30.7 percent share of the dollar-based market. HP, meanwhile, sold almost $3.2 billion worth of systems.

The fastest-growing seller, in revenue terms, was Dell, which pumped up sales by over 20 percent from the same quarter in 2003.

As in the past, the trend is toward less expensive servers. The growth rate of servers shipped in the second quarter greatly outpaced the increase in revenues. Overall, revenues increased only 7.7 percent while shipments climbed 24.5 percent.

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