Australian Server Market Set to Grow in Second Half of 2002, Says IDC

NORTH SYDNEY – JULY 8, 2002 – After a slow start to the first half of the year, IDC expects the server market in Australia to pick up slightly during the final six months of 2002. Revenue in the 1st half of 2002 declined by 3% year on year, but improving economic conditions and renewed activity in key vertical segments is set to boost sales in the 2nd half of 2002.


The server market has been through a very turbulent 18 months but all indications point to an upswing in activity over the coming quarters with IDC expectations for growth set at 2% year on year, said Tom Minarik, IDC Senior Analyst for Servers and Workstations.

While the expansion of the server market in the 2nd half of 2002 will not break any land-speed records, some focus on infrastructure outlays in telecom and government segments, as well as an increasing interest in High Performance Computing capabilities by corporations will be enough to see the market move out of reverse and into first gear, added Minarik.

With over-provisioning a common theme in purchasing patterns prior to 2001, the dot com crash brought about a rethink by end-users on how best to utilise server infrastructure and maintain a low Total Cost of Ownership. End-users have focused efforts on consolidation and lowering IS costs rather than expanding capacity and this has increased the level of competition in the server market. We are not out in the clear just yet, but given an improving economic forecast and higher demand expectations, early 2003 should see a return to healthy growth for the Australian server market, Minarik said in conclusion.

Upcoming Events:

ServerVision 2002

Join Industry experts including; HP, Sun, NEC, AMD, Citrix and leading IDC analysts at ServerVision 2002 to hear the latest views on the future of Australia's server landscape.

Date: 11th July 2002

Venue: Sydney- The Westin Hotel, 1 Martin Place

Time: 8.00am- 5.30pm

Price : Early Bird $157 incl GST

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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 local and 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 organisations, eBusiness companies and the financial community. Additional information can be found at