HP Outpaces Market in Blade, x86 and UNIX Server Market Share Growth

HP increased its worldwide server unit shipments by 10 times the total of all other vendors combined in the third calendar quarter of 2007, according to figures released today by industry analyst firm IDC.(1)

During the period, HP captured 32.4 percent total unit shipment share ­– more than Dell, IBM and Sun – and grew server factory revenue faster than the market. Highlighting its performance, HP experienced significant growth across its ProLiant, Integrity and BladeSystem families of servers and server blades.

“This quarter’s stellar results exemplify HP’s ability to deliver server offerings that address the needs of IT leaders worldwide,” said Scott Stallard, senior vice president and general manager, Enterprise Storage and Servers, HP.

After adding products designed specifically for the midmarket, HP saw increased demand for its HP BladeSystem c-Class architecture and ProLiant family of servers as more customers looked to refresh their IT infrastructures with lower cost, higher performing server systems.

HP extended its lead as the No. 1 blade server vendor in total blade server units shipped and factory revenue, growing revenue by 79.6 percent year over year and gaining 9 points of market share year over year at the expense of IBM and Dell.

HP also maintained its commanding lead as the No. 1 x86 server vendor, with 33.2 percent unit market share and 33.3 percent total factory revenue share, growing nearly three times the year-over-year unit growth rate of the overall x86 market.

HP increased its total high-end UNIX(2) server share by growing factory revenue 9.8 percent year over year and increasing unit shipment market share by 28.5 percent year over year, while the total high-end server market overall declined. As more companies look to drive growth by modernizing business-critical applications on highly reliable and efficient systems, HP experienced increased demand for HP Integrity servers in the third quarter of 2007.

“HP is innovating across its overall server and BladeSystem portfolios and executing effectively on its channel strategies for value-added resellers and integrators,” said Stallard. “These market share results illustrate that we are making the right investments, in the right technologies, at the right time.”

Additional details and highlights from IDC’s report include:

* In the worldwide blade server market, which exceeded $1 billion in the third quarter of 2007, HP extended its No. 1 position, growing its total blade factory revenue by 79.6 percent and units shipped by 89.3 percent year over year during the period. Fueled by increased customer demand for the HP BladeSystem c-Class architecture, HP now holds 44.1 percent unit shipment share and 42.1 percent factory revenue share, gaining 14.2 percentage points of unit shipment share and 9.0 percentage points in revenue year over year.
* Growing significantly faster than the x86 server market overall, HP saw increased success with its ProLiant family of servers, growing x86 factory revenue 10.7 percent year over year. With the availability of new ProLiant servers tailored for small and medium-size businesses and a broad range of refreshed server systems based on the latest quad-core processor technology, HP led the x86 server market for the 45th consecutive quarter with 33.3 percent factory revenue share and 33.2 percent shipment share.(3)
* Continuing to deliver market leadership across the high-performance computing market, HP led the market with 34.3 percent market share and outpaced the market in revenue growth. Additionally, HP continued to hold the No. 1 position in the high-performance computing cluster market in the third quarter of 2007 with 34.4 percent revenue share, marking the fifth consecutive quarter of leadership.(4)
* As more businesses look to move from proprietary server architectures to lower cost, standards-based systems, HP maintained its No. 1 position in combined Windows®, Linux and UNIX server unit shipments and factory revenue, with 32.4 percent and 32.0 percent share, respectively. These three operating systems account for 98 percent of all servers shipped worldwide.
* HP grew Linux server unit shipments and factory revenue significantly faster than the market, gaining 4.7 percentage points of factory revenue share in the third quarter of 2007. HP grew Linux server factory revenue by 26.6 percent and unit shipments by 31.1 percent year over year. As a result, HP remains the No. 1 Linux server vendor worldwide.
* Fueled by increased demand for HP Integrity and HP Integrity NonStop servers in the third quarter, HP grew Intel® Itanium® processor-based server revenue by 57.2 percent.
* HP maintained its No. 1 position in both revenue and factory units shipped in the highly competitive x86-64 processor-based server market segment. HP shipped more than 2.3 times and 26.3 times as many servers as IBM and Sun, respectively, leading the competition in both Intel and AMD x86-64-based servers.

More information about HP servers is available at www.hp.com/go/servers.

About HP

HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $104.3 billion for the four fiscal quarters ended Oct. 31, 2007. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

(1) IDC, Q307 Worldwide Quarterly Server Tracker, November 2007.

(2) Includes systems costing $500,000+.

(3) Includes Compaq ProLiant from Q196 through Q202 and HP ProLiant from Q302 through Q307.

(4) IDC, Worldwide Technical Server QView Q3 2007, November 2007.

AMD is a trademark or registered trademark of Advanced Micro Devices, Inc. Intel and Itanium 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.

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 but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2007 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2006. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.