Worldwide Server Revenues Jump 12% from 3Q99 to 3Q00, IDC Says

FRAMINGHAM, MA – DECEMBER 13, 2000 – The worldwide server market turned in a solid performance in 3Q00. According to quarterly server data released today by IDC, factory revenue jumped 12% from the year-ago quarter to $15.4 billion. Shipments increased 21% during the same time frame. Sequential growth was slower, with revenues up 6% from 2Q00. However, the jump from 2Q00 to 3Q00 represents the biggest sequential growth in the market this year.

 

“One of the biggest factors driving growth in the worldwide server market are Standard Intel architecture servers, especially rack-optimized servers,” said Vernon Turner, IDC’s vice president of Global Enterprise Server Solutions. “These devices enable horizontal scaling of the Internet infrastructure and are experiencing tremendous demand.” According to IDC, revenue for rack-optimized servers increased almost 400% from 3Q99.

Another reason server spending was stronger in 3Q00 than in 3Q99 is because Y2K concerns inhibited expenditures last year.

3Q00 Highlights

· IBM maintained its lead in the worldwide server market, but Sun Microsystems made significant gains, growing its revenues faster than any other vendor and jumping from the market's fourth position in 3Q99 to second place in 3Q00.

· The high-end segment of the server market, which includes systems priced over $1 million, increased its revenues the fastest, with year-on-year growth of 18% in 3Q00. The entry server market, which includes systems with prices less than $100,000, was next, with 11% growth. However, its sequential growth was the highest at 8%.

· Despite talks of declines in the Western Europe market, server revenue there was up 8% from the year-ago quarter. Asia/Pacific (excluding Japan) was the fastest-growing region, increasing its revenues 27% from 3Q99.

· Linux servers are becoming increasingly popular. Revenues for this emerging operating environment increased a whopping 178% from 3Q99.

IDC’s Worldwide Quarterly Server Tracker is a quantitative tool for analyzing the global server market on a quarterly basis. The Tracker includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, CPU type, and architecture.

To purchase the Worldwide Quarterly Server Tracker, contact Hoang Nguyen at 508-935-4718 or hnguyen@idc.com. For more information on the Tracker, please visit http://www.idc.com/Hardware/facts/pdf/WWQtrlySrvrTrack.pdf.

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 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 organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.