Western European Workstation Market Grew 23% in 1998, According to IDC

COPENHAGEN, August 17, 1999 – According to International Data Corporation (IDC), the Western European workstation market grew 23% in 1998 over the previous year, with a further compound annual growth rate of 14% expected for the 1998?2003 period. Market growth is being driven by the staggering increase in personal workstation shipments, which now account for more than three-quarters of all workstations shipped.

"The market today is dominated by the personal workstations segment and its PC-like business model carried over from the desktop market," said Lars Rasmussen, a senior analyst with IDC's European Workstation, Unix, and Server Operating Environments Center. "With frequent model updates and a lack of technical differentiators, vendors are competing on price and branding."

Recently, focus has been transferred to the more soft elements of branding and addressing customers needs, which has led to a three-tier brand model and attempts to reorganize products around actual needs instead of the usual focus on the operating system and technical specifications on the hardware only. "The vast majority of the sales comes from PC upgrades where the enterprise demands higher security and reliability as the desktop increasingly becomes integrated into mission-critical IT infrastructures and tasks," Rasmussen said.

The total Western European workstation market experienced a slight drop in the generated value, dropping 2% to just more than $4.2 billion. Increasingly competitive pricing that led to such strong growth in terms of unit shipments was not accompanied by an equivalent growth in the value of the market. "Personal workstations, however, will continue to drive growth and will gain wider acceptance in all application segments, enjoying increasing penetration into individual organizations as well as across all company sizes," Rasmussen said.

Workstations in Western Europe, Review and Forecast, 1998-2003 (IDC#W01FB) covers the Western European market for traditional workstations as well as branded and non-branded personal workstations. Unit shipment, factory revenue, and installed base data are presented by the top vendors and for the overall market split by the following 16 countries: Germany, the United Kingdom, France, Italy, the Netherlands, Belgium, Sweden, Denmark, Norway, Finland, Switzerland, Austria, Spain, Portugal, Greece, and Ireland. This report is available to purchase from your local IDC office.

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