Report: IBM #1 in Blades; Outgrows X86 Server Segment for 1Q06

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ARMONK, NY - 24 May 2006: IDC reported today that in the first quarter 2006, IBM led blade server revenue share for the eleventh consecutive quarter and grew twice as fast as the top two vendors in x86 server shipments year-to-year. (1)

According to IDC, the volume server market is the "primary growth engine for the overall server market." The report showed that IBM grew factory revenue by 11.2 percent for x86 servers and grew its x86 units twice as fast as HP and three times as fast as Dell in first quarter 2006 year-to-year.

IBM led in first quarter blade server revenue with 40.1 percent of the revenue share and total revenue up 47 percent year-to-year.

"As hybrid x86 systems rapidly gain traction, IBM has leveraged our System x investments in R&D and channel enablement," said Susan Whitney, general manager, System x. "IBM's innovation in virtualization and power optimization is increasingly a competitive differentiator in x86 servers."

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(1) Based on IDC Worldwide Quarterly Server Tracker, 1Q06, issued on May 24, 2006

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