Hewlett-Packard held onto second place in overall sales, grabbing 26.9% of overall server revenues, down from 30.3% as its server sales slumped 10.2%, according to Gartner.
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Dell remained a distant third in the server market market, despite a sales surge that pushed its share of worldwide server sales to 14.8% from 13.1% during the year-ago period.
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Hewlett-Packard's server sales fell 7% in the second quarter.
More important, says Carr, Sun's other motive may be inspiring an industry shift--one that could mean more high-end server sales and reverse a growing trend toward sales of cheaper Windows and Linux servers.
And while Intel reported strong server processor sales, the company is also counting on its 45-nanometer technology to pay off in notebooks.
Arya says he now sees server chip sales growing 8% a year through 2014, up from his previous forecast of 5% growth, driven by demands created by consumer cloud applications, new opportunities in adjacent storage and networking and gains gains over legacy RISC vendors.
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Bartels points to the most recent government data released Friday that show a drop-off of around 2% in PC, server and peripheral sales for the third quarter of 2008 compared to the same quarter last year.
Oracle mushroomed in the client-server business, with sales executives sometimes throwing free developer databases from helicopters to crowds of independent allies.
Oracle (nasdaq: ORCL - news - people ) mushroomed in the client-server business, with sales executives sometimes throwing free developer databases from helicopters to crowds of independent allies.
The result: sales of x86 server processors are growing fast.
Profitability in DRAM remained weak despite growth in global PC shipments in the high-single digit percentage quarter-on-quarter and a push in sales of mobile and server DRAM.
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Business software sales grew 7%, server and tools revenues grew 12%, and XBox-driven entertainment and devices business grew 30% over the year ago period.
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While server and PC vendors have been experiencing flagging sales since the beginning of the year, Cisco Systems, which sells networking equipment like routers and switches, has only felt a fraction of their pain.
On the components business side, demand for PC DRAM remained weak but growth of high value-added products such as server and mobile DRAM was constant due to increased sales of mobile devices.
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It allows you to hand-wave weak sales or bad reviews and blame outside factors like pirates or server failures in the event the game struggles.
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Moving from the NT server field to Unix, as Compaq intends to do, won't result in a mixed sales pitch from the company, Yeates said.
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