Worldwide server market carries on falling

Q1 saw further decline in the worldwide server market, according to IDC. It reports that factory revenue slipped by 20% compared to Q1 2001, falling from US$13.4 billion to US$10.7 billion.

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By  Neil Denslow Published  June 7, 2002

Q1 saw continued contraction in the worldwide server market, according to IDC. It reports that factory revenue slipped by 20% compared to Q1 2001, falling from US$13.4 billion to US$10.7 billion.

“While the market continued to decline, results certainly indicate that the environment is improving,” says Vernon Turner, IDC's group vice president of global enterprise server solutions.

“Relatively flat sequential growth for Sun Microsystems, Dell, and Compaq’s Industry Standard Server Group all help point to firming conditions for the volume server market and a return to a more predictable demand,” he adds.

IBM was top of the pops in the worldwide server market grabbing 23% market share. However, Big Blue faces a challenge from the new HP as second placed Compaq’s 17% share and fourth placed HP’s 14.6% gives it a bigger total figure. Sun was third with 14.8% and Dell was fifth with 8%.

The analyst house also highlights the fact that the worldwide UNIX server market contracted more than the overall market, with revenue drooping by 24% to US$4.7 billion. In the UNIX sector, Sun Microsystems were top with 34% market share, followed by HP with 27% market share. IBM and Compaq rounded out the top 4 vendors with 17% and 7% market share, respectively.

“IDC believes that the infrastructure build out has worked out much of its excess hardware inventory; therefore, demand is expected to return later this year,” note Steve Josselyn, research director, enterprise server fundamentals program

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