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Opteron-Based Servers Propel Sun's Growth

Market share data released by Gartner Dataquest this week indicates that Sun Microsystems is finding success with its Opteron-based Galaxy line of servers.

During the first quarter, Sun grew server revenue faster than IBM, HP and Dell, while its unit sales grew at about the same pace as those competitors, with the exception of IBM, according to the Gartner data. (See tables, pages 2-3)

Sun's market share in revenue increased from 9.8 percent in first quarter 2005 to 10.5 percent in the first quarter this year. However, Sun's market share in unit shipments fell from 4.7 percent to 4.4 percent over the same period, showing that Sun's average unit selling price was greater than the industry average.

While Sun's average unit selling price was higher than the industry average, it was also decllining. Sun's server revenue was 7.6 percent higher during the first quarter over the year-earlier period, while its unit shipments were up 8.1 percent.

Sun's lower average selling price for servers and its server revenue growth coincided with the release of its Opteron-based Galaxy product line, which debuted last September and opened the x86 market to Sun and its representatives.

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