PALO ALTO, Calif.----HP NYSE:HPQ extended its lead in the worldwide blade server market in both total blade server units shipped and factory revenue, according to second calendar quarter 2007 server market figures released today by industry analyst firm IDC.¹

HP significantly increased its lead as the No. 1 blade server vendor in the period with 47.2 percent total factory revenue share, a year-over-year factory revenue growth rate of 71.9 percent.

As businesses require more powerful and scalable computing solutions for traditional applications and new workloads such as Web 2.0, high-performance computing and gaming, HP saw increased demand for its HP BladeSystem c-Class http://www.hp.com/go/bladesystem architecture and ProLiant http://www.hp.com/go/proliant family of servers in the second quarter of 2007. HP maintained its commanding lead as the No. 1 x86 server vendor, with 34.8 percent unit market share, growing at 18.2 percent year over year in a market that grew unit shipments 7.8 percent.

As the worldwide server market accelerated overall, HP held its No. 1 position in unit shipments for the 21st straight quarter, increasing its server units by 17.4 percent year over year in the second quarter and growing unit shipments the fastest of the top five vendors in the worldwide server market. With impressive growth across its ProLiant, Integrity and BladeSystem families, HP captured 33.7 percent total unit shipment share, shipping more than one out of every three servers in the world; it also grew server factory revenue faster than the market.

“HP’s continued market leadership demonstrates we are successfully investing in areas critical for our customers’ success,” said Scott Stallard, senior vice president and general manager, Enterprise Storage and Servers, HP. “HP’s innovation across our server and BladeSystem portfolios is driving customer preference that competitors cannot match and makes us a key technology partner for today’s environments and those to come.”

Highlights from IDC’s worldwide report include:

• Leading the blade server market for the third consecutive quarter, HP grew its total blade factory revenue by 71.9 percent in the second quarter of 2007, powered by increasing customer demand for the HP BladeSystem c-Class architecture. During the quarter, HP captured 46.2 percent unit shipment share and 47.2 percent factory revenue share and gained 13.2 percentage points of unit shipment share and 9.7 percentage points in revenue year over year.
• Outpacing the x86 server market overall, HP increased its lead to 35.1 percent factory revenue share and 34.8 percent shipment share. Driven by customer demand for new workloads beyond the typical strongholds, HP saw increased success with its ProLiant family of servers, growing x86 factory revenue 17.5 percent year over year.
• Showing continued leadership across the high-performance computing market, HP tied for the No. 1 position with 32.7 percent market share. HP continued to hold the No. 1 position in the high-performance computing cluster market in the second quarter of 2007 with 29.5 percent revenue share, marking the fourth consecutive quarter of leadership.²
• In the highly competitive AMD® Opteron™ processor-based server market segment, HP maintained its No. 1 position in both revenue and factory units shipped. Leading the competition in Intel® and AMD x86-64-based servers, HP shipped more than 2.4 times and 22.3 times as many servers as IBM and Sun, respectively.
• Driven by continued success with the HP Integrity http://www.hp.com/go/integrity and HP Integrity NonStop http://www.hp.com/go/nonstop family of servers, HP held the No. 1 position in the EPIC/Itanium® processor market segment in both factory revenue and units shipped, with 42.3 percent factory revenue growth year over year in the second quarter of 2007.
• Growing significantly faster than the market, HP grew Linux server unit shipments and factory revenue by 30.6 percent and 43.8 percent, respectively. HP remains the No. 1 Linux server vendor, gaining more than 6 percentage points of factory revenue share in the second quarter of 2007.
• In combined Windows®, Linux and UNIX server unit shipments and factory revenue, HP maintained its No. 1 position with 33.6 percent and 32.0 percent share, respectively. These three operating systems account for 97.8 percent of all 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 $100.5 billion for the four fiscal quarters ended July 31, 2007. More information about HP is available at www.hp.com.

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¹ IDC, Q207 Worldwide Quarterly Server Tracker, August 2007.

² IDC, Worldwide Technical Server QView Q1 2007, August 2007.

AMD and Opteron are trademarks or registered trademarks of Advanced Micro Devices, Inc. Intel and Itanium are trademarks or registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Windows is a U.S. registered trademark of Microsoft Corp. UNIX is a registered trademark of The Open Group.

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