Cisco Takes Q1 Americas x86 Blade Server Flag from HP

Cisco Systems (CSCO) has emerged from the Q1 2014 server tussle with Hewlett-Packard (HPQ) at the top of the revenue heap for x86 blade servers in the Americas, according to new figures from researcher IDC, which also rank the networking giant as the leader in North America.

HP has dominated the segment for some eight years, and still leads in units shipped in North America, IDC said, but Cisco’s push to leverage its installed base to land server wins likely contributed to its 17 percent unit shipment year-over-year uptick for the quarter, as HP slid some 19 percent.

Paul Perez, Cisco Unified Computing System (UCS) vice president and general manager, said leading in the Americas isn’t enough—the vendor intends to take over global domination from HP as well. Partners, he said, account for some 80 percent of its UCS sales.

"Disruptive innovation has been the secret to our server success," said Perez. "In 2009 we delivered the first true innovation the server industry had seen in over a decade. Five years later, we're now the undisputed leader in x86 blade servers across the Americas, and are poised to capture the worldwide market over the next few quarters.”

Perez said Cisco will have to keep innovating to hold its lead. “Our innovation engine continues to accelerate; it must, the market is moving fast. Customers are adopting UCS because our innovation drives positive business outcomes for them. Our application-centric infrastructure will revolutionize the application experience and unlock further growth for Cisco," he said.

According to IDC, Cisco’s 39 percent server market growth dating back four quarters exceeded all of its rivals for the same time period. The vendor still lags HP in worldwide x86 blade server revenue market share.

By IDC’s figuring, Cisco holds a 41 percent stake in the North America x86 blade server market with $306 million in revenue, followed by HP at 35 percent and $267 million, Dell at 12 percent with $92 million and IBM at 10 percent with $78 million. HP's worldwide 42 percent stake dwarfs all its competitors, including Cisco at 26 percent share of the segment.