FRAMINGHAM, MA – Fourth quarter sales of servers fell 0.2% year-over-year to $14.5 billion, the first such drop since the first quarter of 2003, IDC said this week.

Worldwide unit shipment growth slowed to 10.6%. Volume systems grew 7.3% year-on-year

Revenue for midrange enterprise servers dropped 11.5% versus last year and high-end servers fell 1.7%.

"The volume server market continues to evolve as richer server configurations driven by both scale-out cluster implementations and scale-up server virtualization initiatives continue to drive increased customer spending," said Matthew Eastwood, program vice president of IDC's Worldwide Server Group. "However, even in the volume segment, the quarterly unit shipment growth of 11.5% was two-thirds the year-over-year unit growth rate observed in 4Q04, illustrating a transition toward more richly configured systems in the market."

IBM retained the top spot, with 38.4% share in factory revenue on a 0.8% rise in sales over a year ago. HP was next with a 26.8% share, with sales up 3.8%, followed by Dell (9.6% share, 7.3% revenue growth), Sun (8.2% share on a sales drop of 10.9%) and Fujitsu/Fujitsu-Siemens (4.3% share, on a 10.9% revenue decline).

HP was tops in shipments, with a 30.2% share, growing shipments 8.8% year over year. Dell, with a 23.3% share, up from 21.3%., was second.