Monday, March 14, 2011

IBM (IBM), Hewlett-Packard (HPQ), Dell (DELL) Lead Server Market

Dell (Nasdaq:DELL), IBM (NYSE:IBM) and Hewlett-Packard (NYSE:HPQ) are the top dogs in the server market, accounting for over 78 percent of global server revenue of $48 billion in 2010. That's a 3 percent increase over the 75 percent server share the big three held in 2009.

What's as important, is the add-ons to servers like software, storage systems and services are all high-margin, making the segment even more profitable.

HP has the largest share of the three with 39 percent of overall revenue. Dell is second, with a 21 percent share. IBM is in third place with 19 percent.

Standard x86 servers for the industry had revenue grow by 29 percent in 2010, which help boost Intel (Nasdaq:INTC) or Advanced Micro Devices (NYSE:AMD), who provide standard microprocessors for the servers.

Dell closed Friday at $15.28, up $0.04, or 0.26 percent. IBM closed at $162.43, up $0.41, or 0.25 percent. Hewlett-Packard ended the session at $41.73, up $0.25, or 0.60 percent.

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