February 21, 2006 9:00 PM PST

Windows bumps Unix as top server OS

Windows narrowly bumped Unix in 2005 to claim the top spot in server sales for the first time, according to a new report from IDC.

Computer makers sold $17.7 billion worth of Windows servers worldwide in 2005 compared with $17.5 billion in Unix servers, IDC analyst Matthew Eastwood said of the firm's latest Server Tracker market share report. "It's the first time Unix was not top overall since before the Tracker started in 1996."

And in another first, fast-growing Linux took third place, bumping machines with IBM's mainframe operating system, z/OS. Linux server sales grew from $4.3 billion in 2004 to $5.3 billion in 2005, while mainframes dropped from $5.7 billion to $4.8 billion over the same period, Eastwood said.

Servers are powerful networked machines for tasks such as handling e-mail, financial transactions, airline reservations and file storage. According to IDC, the overall server market grew 4.4 percent to $51.3 billion from 2004 to 2005. Another market watcher, Gartner, released data Tuesday that largely agreed, with 4.5 percent growth to $49.5 billion.

Conventional wisdom in the 1990s forecast that Microsoft's Windows would inexorably move to market leadership, but its arrival was slowed by several factors. For one thing, Windows took much longer to mature than many expected. For another, Unix--in particular Sun Microsystems' Solaris--succeeded wildly in the dot-com spending spree. And out of the blue came Linux, an operating system modeled after Unix but popular on the same hardware as used by Windows--servers built with x86 processors such as Intel's Xeon and, increasingly, Advanced Micro Devices' Opteron.

The Unix market, though, is still huge, and the three major players are fighting for every scrap. In another first, IBM secured the top spot in 2005, with 31.8 percent of the market to Hewlett-Packard's 29.8 percent and Sun's 26.2 percent.

"They set that out as a goal, and it does appear they achieved it," Eastwood said.

Sun is trying to restore Unix fortunes as well by making Solaris an open-source project and bringing it to x86 servers. Although Sun's Unix revenue continued to decline, dropping 10 percent to $4.6 billion in 2005 according to Gartner, Sun dominated unit shipments with 59 percent of the 272,000 shipped.

Overall market growth
IBM led the overall market in 2005 in terms of revenue, with $16.9 billion in sales and 32.9 percent share, IDC said. But IBM's growth was slower than the overall market, and the company lost 0.3 percentage points of share.

Two major server companies that grew faster than the overall market: No. 2 HP, with 8.9 percent growth to $14.2 billion, and Dell, with 13.3 percent growth to $5.3 billion.

No. 4 Sun, which has been losing share of server revenue for years, continued its declines, with revenue shrinking 4.9 percent to $4.9 billion. But its new "Galaxy" line of x86 servers and UltraSparc T1 "Niagara"-based servers could help the company in 2006, Eastwood said.

"I think Sun's pretty well-positioned this year for some growth," Eastwood said. In the fourth quarter of 2005, Sun's x86 server revenue grew almost 69 percent to about $100 million, though it's still in sixth place.

Lower-end servers
As in years past, much of the growth took place in lower-end servers costing $25,000 or less--a category that accounted for 6.8 million of the 7 million units shipped, Eastwood said. As these systems assume important duties and simultaneously juggle multiple tasks through virtualization technology, they more often are sold with large amounts of memory and internal storage, Eastwood said.

"The systems and configurations going out are much richer," he said, a fact that's slowing the decline in average selling prices that has been typical in the computing industry.

AMD's Opteron processor made significant strides in the lower-end market. Servers using AMD's chips accounted for 6 percent of the x86 server market in the fourth quarter of 2004, with the rest being Intel chips, but a year later increased to 14.3 percent.

"There's real strong movement there," Eastwood said.

The lower-end server market is strategic because it's growing faster than the overall market. For example, in the fourth quarter, x86 server sales grew 6.7 percent to $6.8 billion while the overall server market shrank 0.2 percent to $14.5 billion.

Another growth category is blade servers, thin models that slide side-by-side into a chassis like books into a bookshelf. The chassis interconnects the blades and supplies communal resources such as power and networking hardware.

Blade server revenue grew 84 percent from $1.15 billion in 2004 to $2.11 billion in 2005. Meanwhile, blades themselves got more powerful and their average price rose from $3,750 to $4,200 during the same period, he added.

IBM continues to lead the blade market with 40.9 percent of sales. HP is in second place with 34.5 percent, while Dell trails in third at 10.1 percent.

See more CNET content tagged:
Unix, IBM z/OS, server OS, x86 server, Sun Microsystems Inc.

Add a Comment (Log in or register) 65 comments (Showing first 20 comments)
# of Windows licenses sold is not comparable with Bundled Unixes
by Maccess February 21, 2006 9:30 PM PST
The leading Unix-like OS, Linux, is a free download, so is FreeBSD, and NetBSD. Any systems administrator worth his salt would just buy the unbundled hardware and download and install the Unix of his choice.

Comparing the number of Windows Server bundled PCs with the number of Unix bundled PCs just doesn't make sense because most PCs destined for use as servers are sold without any software or operating system installed, so don't register in the survey as "Unix PCs," even though that's what they are.

Furthermore, one would need to include all the Linux running server appliances, from LAN enclosures, LAN raids, etc., etc., to see that Windows as a server OS has only a miniscule share of the server market.
Reply to this comment View all 3 replies
You have point.
by Philips February 22, 2006 2:21 AM PST
I haven't seen large enterprise, can't tell what happens there.

But small/medium business (up to 500 employees) has already switched to PC servers completely. All of my emploers in last five years used extensively and exclusively Linux and Windows homebrew servers.

People sort'a tired of paying $20k to Sun just to get performance they can get from Intel's Xeon system for $5k. Even if you include braindamaging experience with Wind0ze it's still cheaper. Buy 4 such systems, out them into redundant configuration, and no way Sun can beat that.

Local hardware shops are doing pretty good job supporting such PC systems. No major problems to date.
Reply to this comment
This makes perfect sense
by rcrusoe February 22, 2006 5:56 AM PST
It doesn't surprise me that there are more Windows servers in use. When we replaced most of our Windows servers with *nix boxes a few years ago, the total number of servers needed dropped by 2/3. (and the hours of support needed dropped even more)

The old rule of one app per Windows server, for the most part is still true, where it has always been common to run multiple apps on Unix/Linux/BSD servers.
Reply to this comment View reply
Market size by $$$ is not an accurate measure
by TizzyD February 22, 2006 6:34 AM PST
If you have company A that charges $10,000 and ships 1 unit and company B that charges $100 per unit and ships 10 units, this type of analysis shows company A as having the bigger market share. But there are more units of company B's product installed. Only by considering installed units, not sales, can you understand the full "market" if you will.
Reply to this comment View reply
Complete and utter bulls**t!
by JLBer February 22, 2006 6:53 AM PST
Forget the fact that just about all variants of UNIX are FREE for a second...

You name ONE Windows server that can REMOTELY compare to a Sun Fire midrange server, like the 24-CPU 6800. (I'm not even going to discuss the 104-CPU Sun Fire 15K because there is NOTHING in the Windows world that comes close!)

Name one Windows server that can take the beating (physically and electronically) of most UNIX-based servers! Most IT shops have to replace with Windows servers every few years. Most UNIX IT shops know how to keep their hardware runnung because UNIX servers are built like tanks compared to their commodity-loaded, Windows counterparts!

For CNET to make this unbelievably IREESPONSIBLE claim is like saying that Yugos are the top car compares to Kia because two $5,000 Yugos were sold instead of one $9,500 Kia! Yeah, drive each for a while and let us know which one collapses first.

This article is nothing more than Microsoft FUD disguised as a news article, which is what I expect from CNet nowadays.
Reply to this comment View all 4 replies
You religious nuts kill me!
by p.shearer February 22, 2006 7:06 AM PST
It?s only a computer OS! I use a mix of AS/400, AIX, Linux, and Windows in the office. They all have there strengths and weaknesses. However when I go home I don?t worry about dominate market share by platform. <sigh> Get a life!
Reply to this comment View all 3 replies
Cool down, it's not real share results, it's just PR for ServerTracker...
by M C February 22, 2006 11:45 AM PST
...which as usual, CNet eats up with a spoon.
Reply to this comment
The Circle of Life
by James_U February 22, 2006 11:57 AM PST
Like many who read CNET, I've been in computing for several decades. I've seen OSes and various software products come and go. I've also seen people get seriously hooked on a product, as if they had much more than just a professional attachment to it. It is time for people to embrace the inevitable. Windows is maturing over time. It will continue to get better and then one day will become out-dated and get replaced by some other product. It is the software circle of life.

You can hold onto UNIX as much as you'd like and crap all over Windows too. The truth is that UNIX OS designers have decided that their product is mature and established and are not as interested as MSFT in driving more features into the OS. In fact, they lampoon MSFT for feature bloat. Yet MSFT continues to move ahead and constantly make incremental improvements in their platform. As a result, more people are adopting Windows because it continues to improve and they have 5-10 year vision for more features they want to provide in their OS.

But, not to worry. The circle of life still applies. 20 years from now a new generation of people will be on a their version of a website debating why some new OS from some new company is better than Windows. Windows will go the way of the mainframe OS, and the OS religious debate will go on.

James.
Reply to this comment View all 2 replies
Feel Sorry for Poor Old Sun
by unelson February 22, 2006 1:32 PM PST
Poor old Sun is getting further and further behind. The once proud king of servers is now lagging in fourth place, continuing to lose Unix market share, and now peddling Windows servers as well to survive as a company. It despised and opposed Linux when everybody was heading that way, and it's now screaming "we do Linux, too!" in yet another embarrassing reversal. So long, Sun, we'll always remember you.
Reply to this comment View all 2 replies
I feel sorry for sun
by itsmani1 February 22, 2006 9:26 PM PST
to me still linux based systems are good for server.
http://mannan.zabvision.edu.pk
Reply to this comment
Nix servers do more with less
by silkysk February 22, 2006 10:03 PM PST
Normally we have one backup server for every 3 nix servers for fall back in case the main server crashes. Windows normally requires one backup server for one live server. This is why Windows are selling more servers than nix servers and also i thing Linux servers should be clubbed with Unix servers as Linux is just another flavour of Unix.
Reply to this comment View all 2 replies
Windows server does better than that!
by richto February 23, 2006 2:03 AM PST
With Windows clustering, we have 4 servers in a cluster ALL working at once and providing fault tolerance, so we dont waste a box every three servers like your UNIX solution.
Reply to this comment View reply
I love this.....
by vsood2 February 23, 2006 6:24 AM PST
It has to happen. I love Windows...
Reply to this comment
Zealots miss the point
by David Arbogast February 23, 2006 10:06 AM PST
All these posts about Linux being better... about actual install base... about irresponsible reporting....

They all have one thing in common: They COMPLETELY miss the point.

This isn't an article about which system is better or which system is cheaper or which system can do more. This is an article about which system is generating the most REVENUE.

Open Source zealots generally consider a situation without regard to financial resources because they still believe that Linux is "free."

The bottom line is that money drives business. The influence of "free" software simply erodes the commercial market for software products. It doesn't allow for future development, product support, or research.

OSS "wins" by eliminating a market... NOT by dominating it.

Anybody interested in the future of IT is paying close attention to the IT market, and where the money goes. "Free" software has yet to match the ingenuity, innovation, and benefits of commercial software, and is only positioned where it is today because it has freely copied so many commercially developed ideas. Some would argue, it has even stolen ideas.

Like I said... those interested in the future of the commercial software market are following where the money goes. Those interested simply in diminishing the commercial software market are counting Linux servers.
Reply to this comment View all 4 replies
Mac OS X the new UNIX!
by libertyforall1776 February 24, 2006 6:05 PM PST
What many reporters miss is that arguably, Mac OS X is the best
UNIX, certainly for UNIX on the desktop -- power and use of use
and maintainability...

Once Apple gets further into the Server business, Mac OS X
Server is likeley to start displacing other UNIX's.

I would not be suprised to see Apple swallow a "big iron" UNIX
vendor in the future...
Reply to this comment
This doesn't count the countless free unix-based systems
by Chrisnwokc February 24, 2006 7:38 PM PST
This is just a rediculous article. They should report on numbers not dollars. Seeing how windows server is far more expensive and forces the use of more expensive hardware to run it. They don't take into account the many and varied free versions of unix-like server operating systems that anyone can download. (I.E. Fedora Core from Redhat, FreeBSD, Slackware Linux, etc, etc, etc...).
Reply to this comment
Not very accurate
by cekortech March 10, 2006 4:55 AM PST
I just put in two RH servers in my Philippines data center, do think they included them in the survey? I wonder if they are including all those Microsoft CALs as revenue? Linux has no CALs so how can you compare by using $$$$ instead of Units?
Reply to this comment
by D`X June 20, 2008 5:49 AM PDT
It is like this :

If you are a stupid server administrator or you are a dumb business owner, who don't know **** about operating systems or servers but it happens to need or have a few, you will choose windows. And whenever you have a problem you'll cry on the phone for support at windows support center. You will pay like a slave and you'll pay cause you are stupid in the first place. You deserve it, you deserve windows. You are made for one another and talk on equal terms, like amateur to amateur.

If you know what you are doing, you have a brain, a logical thinking and you actually know things about Informatics and computer technology, you will choose Unix/Linux. Cause you have a brain and this operating systems actually have a logic, you will know what to do when you need to do something, you are not scared of a command line and you won't cry on any phone, cause you have a logic, you can help yourself and easy in an operating system with a good solid logic behind it. Linux and Unix are not for losers, for those windows was made.

I speak from experience with both and all operating systems and after interacting with a lot of businesses, server administrators or business owners who don't know **** about what they are doing.

And another thing, if one don't get it. There are about 500 supercomputers in the world and 85% are using Linux, while the rest use Unix. So, think again, before talking ****. If you are dumb, it doesn't mean that the world have to go down on your level. Just install Windows, be happy and most important, be quiet. Cause you make a fool out of yourself.
Reply to this comment
 See all 65 Comments >>
Powered by Jive Software
advertisement

Latest tech news headlines

Resource center from News.com sponsors
Aligning CIO & CEO visions
What CIOs need to know

It's a simple truth. The closer you and your CEO see things, the greater your chance for success. Our exclusive report can help you get there—and help your business grow. To get the report, featuring the views of 765 CEOs on innovation. click here

Click Here!
What CEOs think: Innovation Insights for CIOs

Learn How CIOs can deliver strategic success for their enterprises

The New CIO: Beyond Technology

Learn how CIOs become heroes

Podcast: Chris Gorog of Napster

Learn about the impact of technology in strategy execution

The future of the Enterprise

Read more about tomorrow's organization

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.

More feeds available in our RSS feed index.

advertisement

Inside CNET News

Scroll Left Scroll Right
  • News - Business Tech

    Samsung contemplating SanDisk acquisition

    South Korean consumer electronics giant is considering a buyout of the chipmaker to reduce its NAND flash memory costs, according to PaidContent.

  • Gallery

    Photos: Ron Paul's RNC alternative

    As the Republican convention took place just miles away, a crowd rallied for the former presidential candidate and his message of limited government, ensured civil liberties, lower taxes, and peace.

  • The Open Road

    Analysts as a lagging indicator of success

    Gartner, Forrester, and other analyst firms tends to be great predictors of the past, probably because that's where they get their money.

  • Beyond Binary

    Memo: Windows chief on new ads

    Windows business unit head Bill Veghte send a memo to troops late Thursday promising that the debut Seinfeld/Bill Gates ad was just an "icebreaker."

  • Video

    YouTube plays party politics

    During the presidential campaigning four years ago, YouTube didn't even exist. Now it's a tool candidates must master to get their message across. CNET's Kara Tsuboi stops by the YouTube upload booths at the Democratic and Republican conventions to find out why Google's video site has such a big presence in Denver and St. Paul, Minn.

  • News - Digital Media

    About time: Joost to launch browser-based player

    Company's desktop client failed to catch on with the public so Joost is retooling, but is it to late to catch Hulu and YouTube?

  • Video

    Political party playlists

    We know the Democrats and Republicans are split over policy issues, but does their musical taste fall down party lines too? And what kind of gadgets did they bring to the conventions to listen to their music? CNET reporter Kara Tsuboi finds out.

  • News - Politics and Law

    Video: Republican convention, day 4 recap

    John McCain offers his vision of what the country can expect if he and running mate Sarah Palin are sworn into office in January.

  • News - Cutting Edge

    Execs predict next Google-like tech

    On eve of company's 10-year anniversary, researchers and business pundits speculate about what technologies might someday have as much impact as Google.

  • Gallery

    Photos: The brains behind Google Chrome

    Here's a look at some of the engineers and executives who took the stage at the company's headquarters as they unveiled the new browser.

  • Gadgettes, the blog

    Gadgettes 105: The Sing, Sing a Song Episode

    We have music on the brain in today's episode of Gadgettes. Don't worry, we won't destroy your ear drums with ear-piercing renditions of your least favorite '80s tunes. Instead, we'll soften the blow with a slew of musical gadgets and accessories.

  • Green Tech

    Green news harvest: Stolen solar panels, hydrogen at home

    Tata to bring small, all-electric car to Norway next year; a banner years for wind power; a home hydrogen-filling station; comparing the presidential candidates on plug-in cars; a microbial fuel cell for developing world; tips on greening your PC.