Here’s How IBM, Dell, and Oracle are Establishing Server Market Share

According to Gartner’s server data, IBM’s (NYSE:IBM) revenue share fell 50 bps Y/Y to 29.7%, while H-P’s (NYSE:HPQ), hurt by collapsing Itanium sales, fell 270 bps to 29.3%, however Dell’s (NASDAQ:DELL) share rose 20 bps to 14.7%. Worldwide server shipments in the third quarter of 2011 grew 7.2 percent year-on-year, while revenue increased 5.2 percent year-on-year, according to Gartner, Inc. Oracle’s (NASDAQ:ORCL) position might finally be stabilizing though the shares fell 30 bps to 5.9% it’s a much smaller drop than Q2’s 130 bps decline.

All of the top five global vendors had revenue increases for the third quarter of 2011 except HP and Oracle. Oracle achieved flat growth. However, HP remained the worldwide leader in the third quarter of 2011 despite the 3.1 percent drop of year-on-year shipment. “The third quarter of 2011 produced growth on a global level but there was some significant variation in growth by region,” said Jeffrey Hewitt, research vice president at Gartner.

“IBM took the lead in the worldwide server market based on revenue the company posted just over $3.8 billion in server vendor revenue for a total share of 29.7 percent for the third quarter of 2011. This share was down 0.5 percent year-on-year. Most of IBM’s revenue growth came from its Power Systems line with some contribution by System X as well,” according to Gartner.

Here’s how these stocks are trading on the news:

International Business Machines Corp. (NYSE:IBM): IBM shares recently traded at $181.25, up $4.19, or 2.37%. They have traded in a 52-week range of $141.28 to $190.53. Volume today was 3,303,045 shares versus a 3-month average volume of 6,020,560 shares. The company’s trailing P/E is 14.28, while trailing earnings are $12.69 per share. Its market capitalization is $213.62 billion. The company pays a dividend of $3.00 per share for a dividend yield of 1.70%. About the company: International Business Machines Corporation provides computer solutions through the use of advanced information technology. The Company’s solutions include technologies, systems, products, services, software, and financing. IBM offers its products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers.

Hewlett-Packard Company (NYSE:HPQ): HPQ shares recently traded at $26.43, up $1.04, or 4.1%. They have traded in a 52-week range of $21.50 to $49.39. Volume today was 15,751,236 shares versus a 3-month average volume of 24,691,900 shares. The company’s trailing P/E is 7.96, while trailing earnings are $3.32 per share. Its market capitalization is $52.57 billion. The company pays a dividend of $0.48 per share for a dividend yield of 1.90%. About the company: Hewlett-Packard Company provides imaging and printing systems, computing systems, and information technology services for business and home. The Company’s products include laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems. Hewlett-Packard sells its products worldwide.

Dell Inc. (NASDAQ:DELL): DELL shares recently traded at $14.87, up $0.65, or 4.57%. They have traded in a 52-week range of $12.99 to $17.60. Volume today was 14,046,124 shares versus a 3-month average volume of 23,905,800 shares. The company’s trailing P/E is 7.66, while trailing earnings are $1.94 per share. Its market capitalization is $26.71 billion. About the company: Dell Inc. offers a wide range of computers and related products. The Company sells personal computers, servers and networking products, storage systems, mobility products, software and peripherals, and services. Dell serves consumers and businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.

Oracle Corp. (NASDAQ:ORCL): ORCL shares recently traded at $29.70, up $0.96, or 3.34%. They have traded in a 52-week range of $24.72 to $36.50. Volume today was 14,496,344 shares versus a 3-month average volume of 33,411,600 shares. The company’s trailing P/E is 16.89, while trailing earnings are $1.76 per share. Its market capitalization is $149.82 billion. The company pays a dividend of $0.24 per share for a dividend yield of 0.80%. About the company: Oracle Corporation supplies software for enterprise information management. The Company offers databases and relational servers, application development and decision support tools, and enterprise business applications. Oracle’s software runs on network computers, personal digital assistants, set-top devices, PCs, workstations, minicomputers, mainframes, and massively parallel computers.

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