HP Again No. 1 in Worldwide Server Shipments, Showing Strong Growth in Worldwide Server Market

PALO ALTO, Calif.—(BUSINESS WIRE)—May 22, 2007— Marking its 20th consecutive quarter of server shipment leadership, HP (NYSE: HPQ) once again was No. 1 in total server units shipped, according to first calendar quarter 2007 server market figures released today by industry analyst firm IDC.(1)

HP grew overall server shipments by 16.6 percent in the first quarter, growing faster than the top 10 vendors in the worldwide server market. Driven by strong growth across its ProLiant, Integrity and BladeSystem families, HP captured 33.6 percent shipment share in the first quarter, shipping more than one out of every three servers in the world. These strong results were underscored with the fact that HP again tied for No. 1 in worldwide Q1 server factory revenue for the third year in a row.

In addition, HP maintained its commanding lead as the No. 1 x86 server vendor, showing continued leadership as the No. 1 blade server vendor in the first quarter with 45.1 percent total shipment share, a year-over-year growth rate of 84.9 percent. Fueled by impressive market acceptance of the HP BladeSystem c-Class architecture and the use of blades in the high-performance computing market, HP took more than five points of sequential market share at the expense of IBM and Dell in the first quarter and outpaced the worldwide blade server market as a whole.

"Today's results from IDC demonstrate HP's formidable strength as a technology provider and confirm that we're meeting and exceeding customer needs," said Mark Hudson, vice president of marketing, Enterprise Storage and Servers, HP. "The strong growth in ProLiant, Integrity and BladeSystem shows not only the breadth and value of our portfolio, but also the strong customer acceptance from midsized businesses through large enterprises and high-performance computing customers."

Highlights from IDC's worldwide report include:

-- HP continued to lead the x86 server market with 35.3 percent factory revenue share and 34.7 percent shipment share, marking the 43rd consecutive quarter of leadership in this space. Driven by continued success with its ProLiant family of servers and increased demand for more richly configured server systems, HP grew x86 factory revenue 17.9 percent year-over-year, the largest growth margin since the fourth quarter of 2004.(2)

-- In the high-performance computing market, HP maintained its No. 1 spot for the first quarter of calendar year 2007 with 33.7 percent revenue share. While high-performance computing industry revenue declined 4.7 percent quarter-over-quarter, HP experienced 3.7 percent growth quarter-to-quarter.(3)

-- In the highly competitive AMD(R) Opteron(TM) processor-based server market segment, HP took the No. 1 positions in both revenue and factory units shipped. Despite the entrance of new competitors to the market, HP gaining 2.9 percentage points of factory revenue share and 3.1 percentage points of shipment share year-over-year.

-- HP held the No. 1 position in the EPIC/Itanium(R) processor market segment in both factory revenue and units shipped, with 39.2 percent factory revenue growth year-over-year in the first quarter, driven by continued market acceptance of the HP Integrity and HP Integrity NonStop family of servers.

-- HP remains the No. 1 Linux server vendor, growing faster than major competitors and holding more than 35 percent factory revenue and shipment market share in the first quarter.

-- In the high-end UNIX server market,(4) HP continued its leadership in factory revenue share and shipment market share driven by the strength of the HP-UX operating environment and growth in HP's Integrity server business.

-- In combined Windows(R), Linux and UNIX server shipments and factory revenue, HP held the No. 1 position, with 33.5 percent and 32.7 percent share, respectively. These three operating systems account for more than 97 percent of servers shipped worldwide.

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 $97.1 billion for the four fiscal quarters ended April 30, 2007. More information about HP is available at www.hp.com.

Note to editors: More news from HP, including links to RSS feeds, is available at www.hp.com/hpinfo/newsroom/.

(1) IDC, Q107 Worldwide Quarterly Server Tracker, May 2007.

(2) Includes Compaq ProLiant from Q196 through Q202 and HP ProLiant from Q302 through Q107.

(3) IDC, Worldwide Technical Server QView Q1 2007, May 2007.

(4) Systems priced at US$500,000 and more; IDC Worldwide Quarterly Server Tracker, May 2007.

Intel and Itanium are trademarks or registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. AMD and Opteron are trademarks or registered trademarks of Advanced Micro Devices, Inc. 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 achievement of expected results and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the risks described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 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.


Aimee Schoaf, +1 623-536-5021
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