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Server shipments increase but growth remains minimal

The worldwide server market grew 0.7% in the second quarter of 2001, according to Gartner Dataquest.

The worldwide server market grew 0.7% in the second quarter of 2001, according to Gartner Dataquest. Global server shipments reached 973,784 units in the second quarter of 2001, up from 966,779 units in the second quarter of 2000. However, the analysts say that slower sales of higher-end, midrange systems in the United States and Western Europe held back worldwide server shipments to minimal growth.

Compaq remained in the top spot with 26.7% of the worldwide market, followed by Dell and IBM, garnering 18.0 percent and 16.7 percent of the market respectively. While the market share positions of the top five worldwide vendors haven't changed, only Dell and IBM had positive year-over-year growth.

"The economic slowdown predominantly affected high-end enterprise systems. Customers began to cut back or defer purchases of expensive high-end server models and focused more on lower-priced systems," says Shahin Naftchi, senior analyst for Gartner Dataquest's Computing Platform Worldwide program.

"IBM's recent aggressive attacks on HP and Sun customers began to bear fruit for the company, while HP's continuing channel conflicts may have helped IBM's attacks become more successful," adds Jeffrey Hewitt, principal analyst for Gartner Dataquest's Servers Worldwide program. "Sun's UltraSPARC III issues and current poor reputation for service and support hastened its decline and this shows that its incredible momentum from 2000 has dissolved for now."

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