IDC Says Worldwide Server Factory Revenues Approached $16.7 Billion in 4Q00

FRAMINGHAM, MA – MARCH 14, 2001 – Growth in the worldwide server market remained strong in 4Q00. According to IDC, factory revenue approached $16.7 billion, up 14% from the year-ago quarter – the largest year-to-year increase of 2000. Shipments, meanwhile, topped 1.2 million in the quarter 16% stronger than in 4Q99. Rack-optimized servers drove much of the market's growth. Their revenue increased an overwhelming 257% year to year. In comparison, the rest of the market decreased almost 6%. With 4Q00 numbers in, IDC reports the worldwide server market topped $60.2 billion in factory revenue on shipments of almost 4.4 million for calendar year 2000. This translates to 7% annual revenue growth and 17% unit growth.


"Rack-optimized servers stole the spotlight in the server industry in 2000," said Vernon Turner, IDC's vice president of Global Enterprise Server Solutions. "Their technology enhancements made them attractive in many industry segments."

The Linux operating environment was another big headline maker in the server space during 2000. Its revenue jumped 79% from 4Q99 to 4Q00. For the entire year 2000, Linux generated more than $1.7 billion for the server market, 132% more than in 1999. Windows NT also experienced strong growth. Its revenue increased 33% to almost $3.8 billion in 4Q00 and finished the year with almost $13.9 billion, 31% more than last year. Unix revenue increased 18% year on year in the final quarter and 14% for the year, landing at $29 billion for the calendar year.

In the fourth quarter, the top five vendors accounted for almost 80% of the worldwide factory revenue:

· IBM led with 27% market share.

· Compaq and Sun Microsystems were neck and neck for the number two spot, at 16.34% and 16.32%, respectively.

· Hewlett-Packard captured the fourth position with 14%.

· Dell rounded out the top five with almost 6%.

For the full year 2000, IBM was the top vendor with 23% of worldwide market revenue. Sun was number two with 17% market share. Compaq captured third place with 16.5%. Hewlett-Packard and Dell rounded out the top five with 15% and 6%, respectively.

Data in this press release comes from IDC's Worldwide Quarterly Server Tracker. For more information on the Tracker, contact Pennie Edgren at 1-800-343-4935, extension 6912 or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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