Press Release:

HP Moves into Tie for No. 1 Market Share Position in Worldwide Server Revenue

HP outships all vendors for 12th straight quarter, growing worldwide server unit market share
PALO ALTO, Calif., May 27, 2005

Driven by faster-than-market growth, HP shared the No. 1 position in worldwide server revenue and continued its No. 1 position in worldwide server shipments for the 12th consecutive quarter, according to first quarter 2005 figures released today by IDC(1).

HP moved to the shared No. 1 spot in worldwide server revenue(2) market share by growing 0.9 percentage points year over year, while IBM declined 1.4 percentage points.

In significant growth segments, HP outpaced the market year over year in units and revenue in x86, blade and Intel® Itanium® 2 (EPIC)-based servers. Additionally, HP holds a No.1 position in revenue in each of the three major operating systems, Windows, Linux and UNIX®, which together comprise nearly 95 percent of all servers shipped.

"Our strong momentum in servers across the board demonstrates that our standards-based strategy and focused innovation are resonating with customers and translating into market share gains at the expense of competitors," said Mark Hudson, vice president, Marketing, Enterprise Storage and Servers, HP. "In key high-growth segments, we expect to continue our solid growth by delivering more choice and value throughout our portfolio."

Other highlights of the analyst firm's report include:

  • In the x86 market, where HP ProLiant servers have led the market for 35 consecutive quarters – nearly nine years – HP extended its No. 1 position in units and revenue, growing faster than the market year over year with double-digit growth.
  • In x86 blade servers, HP more than doubled its revenue year over year, gaining share faster than IBM in units and in revenue both worldwide and in the United States. Together, HP and IBM represent 74 percent revenue share, while Dell is a distant third with 9.7 percent.
  • HP's strategy of providing customer choice in x86-64-based servers delivered the No. 1 position for HP in units and revenue. HP leads this market in both AMD Opteron™ and Intel Xeon™-based systems.
  • In Itanium 2 servers, HP outgrew the market in units and revenue, nearly doubling revenue year over year.
  • HP secured the No. 1 position in total UNIX server revenue, being the only top 3 vendor to grow high-end UNIX revenue – posting double-digit growth. HP held the No. 1 position in Windows units and revenue, growing faster than the market year over year and taking market share from competitors. HP maintained its No. 1 spot in the Linux server market with 33.6 percent growth in units year over year and 29.8 percent year-over-year growth in revenue.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2005, HP revenue totaled $83.3 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

(1) Source: IDC's Worldwide Quarterly Server Tracker, May 2005.

(2) Factory revenue according to IDC's Worldwide Quarterly Server Tracker, May 2005.

Intel, Itanium and Xeon are trademarks or registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Windows is a U.S. registered trademark of Microsoft Corp. UNIX is a registered trademark of The Open Group. Linux is a U.S. registered trademark of Linus Torvalds. AMD Opteron is a trademark of Advanced Micro Devices, Inc.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at