IBM continues to dominate the global server market in terms of revenue, with 33.7 percent of the total market share in the third quarter of this year, but HP has the lead in terms of shipments.

Overall, server revenue climbed 9.1 percent from a year ago and reached $13 billion. According to Gartner, IBM server revenue climbed 7.4 percent from the same time a year ago in 2005, when it had 32.7 percent of the market.

Overall, IBM's server revenue for the third quarter stood at almost $4.4 billion. This was followed by HP with revenue of nearly $3.3 billion and Dell with $1.4 billion.

Sun had a good quarter and showed both a 24.7 percent increase in revenue and a 6.4 percent increase in shipments. Dell also saw a more than a 10 percent increase in both its shipments and its revenue.

Total shipments hit 2.2 million units, an increase of 4.4 percent in the third quarter. HP led the worldwide market with 540,609 server shipments in the third quarter or 26.5 percent of the market, compared with 27 percent at the same time last year.

Dell held the second spot on the Gartner list with 459,950 shipments and 22.5 percent of total shipments. IBM took the third spot with 332,777 shipments and 16.3 percent of total shipments. Sun and Fujitsu held the fourth and fifth spots.

Meanwhile according to rival IDC, the 2006 worldwide server market grew at the fastest growth rate in four quarters and the largest third quarter spending on servers was recorded since the third quarter of 2000. In terms of market share IBM led with 33.1 percent, followed by HP on 27.7 percent and Dell on ten percent.

"Enterprise and SMB (small and medium business) customers alike continue to evolve their IT buying patterns based on the robust product innovation that continues to occur across the marketplace," said Matt Eastwood, program vice president of Enterprise Platforms at IDC.

"For end-users, new levels of compute density mean increased power densities and expanding power and cooling challenges, which are driving different IT infrastructure acquisition patterns. For technology suppliers, this inflection point represents an opportunity for the vendors best equipped to innovate their systems, software, and services offerings and meet these challenges."