IDC Canada Announces Results Of The 1998 Canadian Workstation Market

TORONTO, ONTARIO –September 4, 1998 — International DataCorporation (Canada) Ltd. recently released the results of a comprehensive study on the Canadian Workstation Market. The results are based on revenues and unit shipments. The 1998 Canadian Workstation Market: Review and Forecast (IDC Canada #98127SYS) bulletin illustrates the relative performance and growth of the workstation market from 1996 to 1997.

Key Findings

The overall workstation market is experienced healthy double-digit growth in both unit shipments and revenues in 1997.

The personal workstation segment is the engine for growth in the workstation market through to the year 2002. On the other hand, the traditional workstation market is poised to see negative growth in both unit shipments and revenues

throughout the forecast period.

Personal workstations emerged as a viable commercial alternative to traditional workstations in 1997.

Personal workstations compete most effectively in the entry-to midrange-level workstation segments. Traditional

workstations continue to dominate the high-end application segments.

The workstation market continues to be controlled by five major vendors (six in the personal workstation segment) and IDC Canada believes that the major vendors will only increase their dominance through the forecast period.

The average sales price for workstations will continue to drop throughout the forecast period, due mostly to the influx

of lower-priced personal workstations.

IDC Canada segments the workstation market into traditional (UNIX/RISC) workstations and personal (NT/Intel or RISC) workstations. The personal workstation market is examined even further by splitting the segment into branded and non- branded personal workstations. Data and analysis surrounding major vendor happenings and industry trends are provided in the bulletin. As well, IDC Canada's five-year forecast of the workstation market by segment for both unit shipments and revenues is included.

The market share leaders in the overall workstation market are similar to the order in 1996; HP is the revenue leader followed by Sun, SGI, IBM, and Digital. HP is also the unit shipment leader followed by Sun, IBM, Digital and Compaq. Sun maintains the top position in the traditional workstation market, while HP leads the charge in the both of the personal workstation segments.

All of the major traditional workstation vendors, except Sun, have adopted a personal workstation strategy to capitalize on that rapidly expanding market, and to hedge their investment in the traditional segment. Sun is the last remaining UNIX-only

workstation vendor, and they are combating the NT workstation momentum by introducing entry-level, price-competitive

traditional workstations.

Other related research to the 1998 Canadian Workstation Market: Review and Forecast is the 1998 Canadian Server Market: Review and Forecast (IDC Canada #98125SYS) which analyzes the entire Canadian server market, from high-end mainframes to entry-level PC servers. The Commercial Systems and Workstations CIS program also includes two other

topical bulletins relating to the Canadian workstation market. 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.

Contact

Alan Freedman

Research Manager, Servers &

Workstations

IDC (Canada) Ltd.

Telephone: (416) 369-0033, ext. 236

Email: afreedman@idccanada.com