IDC Canada Announces Results Of The “1998 Canadian Server Market: Review And Forecast”

TORONTO, ONTARIO — July 14, 1998 — International Data Corporation (Canada) Ltd. recently released the results of a comprehensive study on the Canadian Server Market. The results are based on revenues and unit shipments.

The report illustrates the relative performance and growth of the three major server market segments (High-End, Midrange, and Entry) from 1996 to 1997. Data and analysis surrounding primary operating environments and major vendor happenings are provided in the report. As well, included is IDC Canada's five-year forecast of the multiuser market by server segment and by primary operating environment.

Key Findings

The Internet and electronic business are major drivers in the server market. Transaction processing, Internet service providing, supply-chain management, web hosting and webdevelopment are providing opportunities in all three server segments.

The Year 2000 dilemma will divert IT spending away from server purchases over the next two years as companies scramble to have their programs Year 2000 compliant. Spending on servers will rise again beginning in 2000.

Servers running UNIX will maintain revenue leadership throughout the forecast period, but servers running NT will have the largest growth with a CAGR of 20%.

The NT operating system will become more robust and will scale into the Midrange market, and NT will become the dominant server operating environment in the Entry server segment.

Looking at the three server segments – High-End, Midrange and Entry – IBM is the market share leader in all three segments, as well as being the number one vendor in total server market revenues. In the strategically important category of servers running the UNIX operating environment, Hewlett-Packard emerges as the revenue market share leader in Canada.

All of the major server vendors have adopted a 'solution strategy', a holistic approach to selling their products. The hardware component is packaged along with pre-installed software and comprehensive service and support offerings. Vendors are customizing the packages and tailoring them to the individual needs of the client. Vendors are marketing these new programs along vertical or server workload lines. Following the trend to deliver solutions based on server usage, IDC (Canada) Ltd. will be publishing a server workload study in the fall (1998 Customer Directions and Buying Behaviour: Server Workload Report).

Other related research to the 1998 Canadian Server Market: Review and Forecast includes the 1998 Canadian PC Futures Report (IDC Canada #98101PCF, July 1998), which takes an in-depth look at the PC Server market in conjunction with analysis of the desktop and mobile PC markets. For more information about this study or any other IDC Canada research and services offerings, please visit http://www.idc.ca, or call (416) 369-0033.

About IDC Canada

International Data Corporation is the world's leading provider of information technology data, analysis and consulting services. With research centres in 40 countries and more than 300 research analysts worldwide, IDC is uniquely positioned to provide a global perspective on IT market and technology trends.

IDC Canada has been the definitive source of research and analysis on information technology markets in Canada

since 1984. Its parent company, IDC is a subsidiary of International Data Group (IDG), the world's largest publisher of computer-related information and the leading global provider of information services on information technology.

For more information, contact:

Alan Freedman, Research Manager, Servers & Workstations, IDC (Canada) Ltd.

telephone: (416) 369-0033, x.236, email: afreedman@idccanada.com