Hewlett-Packard has reported a 40 percent increase in revenue from the sale of servers equipped with the open-source Linux operating system and services to support them.

Linux-based revenue at HP increased to more than US$2.5 billion in 2003 from $2 billion the previous year, a company spokeswoman said. The company reported total revenue of $73.1 billion in the fiscal year ending 31 October, 2003.

With 28.1 percent of Linux factory revenue worldwide, HP held the number one position in the rapidly expanding Linux server market in the third quarter of 2003, according to IDC's 03 Quarterly Server Tracker.

The company has defined several reference architectures for enterprise Linux systems, one using open-source software from Apache Jakarta Project, JBoss Group and MySQL, and others using Oracle's 9iRAC or BEA System's WebLogic Server.