Worldwide Server Factory Revenues Contracted 20% in First Quarter, IDC Says
FRAMINGHAM, MA – MAY 31, 2002 – The worldwide server market continued to contract in the first quarter as capital spending continued to remain elusive. According to IDC, worldwide server factory revenues declined 20% from $13.4 billion in 1Q01 to $10.7 billion in 1Q02. Unit shipments remain flat at 1.059 million units from 1Q01.
"While the market continued to decline, results certainly indicate that the environment is improving," said 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."
IDC rates the top five vendors in the worldwide market according to revenue share as follows for 1Q02:
1. IBM 23%
2. Compaq 17%
3. Sun Microsystems 14.8%
4. Hewlett-Packard 14.6
5. Dell 8%
In one of the significant segments of the server industry, the Worldwide UNIX server market contracted more than the overall market, with revenue declining 24% to $4.7B. Sun Microsystems led the market 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. According to Steve Josselyn, Research Director, Enterprise Server Fundamentals program, "IDC believes that the infrastructure buildout has worked out much of its excess hardware inventory; therefore, demand is expected to return later this year."
"Despite the larger than expected decline for the first quarter, the server market landscape will change dramatically over the course of the next few years with the introduction of the Blade servers," said Mark Melenovsky, IDC’s Research Manager for Server and Infrastructure Hardware research.
"The Blade server market started the first quarter with a nice baseline." According to IDC, the Blade server market shipped roughly 6,700 units, and performed much better than expected for the first quarter. Especially strong demand for this new form factor was documented in Western Europe, particularly in high performance clustered environments.
IDC's Worldwide Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture.
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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 www.idc.com.
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