Server market in Q3 2006: Windows servers up 4.6%, Unix down 1.7%

Microsoft Windows servers continued to show nice growth as revenues grew 4.6% YTY. Significantly, quarterly factory revenue of $4.8 bln for Windows servers represented the largest single segment of the server market, gaining nearly 3.0 points of revenue share sequentially. Linux server revenue was $1.5 bln for the quarter as growth continues to moderate, with YTY revenue growth of 5.4%. Although Linux servers now represent 11.8% of all server revenue, revenue growth for the quarter was approximately one sixth the growth rate observed in Q3 2005 as volume market growth moderates and YTY compares become more difficult. Unix servers experienced a 1.7% decline in factory revenue YTY. Worldwide Unix revenues of more than $3.9 bln for the quarter represented 30.1% of overall quarterly factory revenue, IDC says.