Israel’s Market for Systems, Servers And Workstations declines 8.5%, According To IDC

TEL-AVIV, Israel, August 19, 1998 — A newly released report by International Data Corporation indicates a decline of 8.5% in the size of the market in Israel for computer systems, servers and workstations. The market totalled $307.4 million in 1997, down from $335.8 million in 1996.

In spite of the decline in total market size, not all market segments have witnessed a slowdown. For example, the market for multi-processor PC servers ("superservers") has actually increased by 58% in 1997, reaching $26.2 million. However, the market's largest segment — workstations –has decreased by 17% in 1997, from $117.1 million in 1996 to $101 million in 1997.

Sigal Hadar, IDC Israel's Director of Research notes that among end-users, medium sized businesses were the fastest growing sector in 1997. "In spite of the recession in Israel, and the effect of southeast Asia's economic crisis, the medium- sized business sector was responsible for over one third of total spending on computer systems, server and workstations in 1997," commented Hadar. "In contrast to medium companies, large and small companies in Israel did not grow demand for systems in 1997," she adds.

IDC's report reveals that IBM, Digital and Hewlett-Packard controlled most of the corporate computer market in Israel in 1997. Sun Microsystems reached forth place, with a clear lead in the workstation market, while Silicon Graphics, who succeeded in substantially increasing its server sales, was positioned in fifth place.

The systems market in Israel is quite mature. This fact, together with the downward trend in average system prices, does not promise a forecast for high growth. IDC estimates that the corporate computer market in Israel will continue to decline in 1998, with growth eventually picking up in 1999, and stabilizing on a yearly average of 5% to the end of the forecast period in 2002.

IDC's report, Israel Systems, Server, and Workstation Market, 1997-2002, reviews and analyzes the market for computer systems, servers and workstations in Israel in 1997, with data broken out by vendor, end-user segment and operation system. It also provides detailed forecasts of market size through 2002. The market sizing and forecasts were developed from interviews with buyers of systems, servers and workstations, and suppliers of IT products. Interviews with all leading systems suppliers were also conducted to determine how they market, sell and deliver products.

About IDC

Headquartered in Framingham, Mass., International Data Corporation provides IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 375 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.

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