IDC: Server Revenues Surge

Server market saw revenues climb 15.2 percent from the third to the fourth quarter in 2002.

Strong growth in the entry-level space buoyed a server market that saw revenues climb 15.2 percent from the third to the fourth quarter in 2002, according to numbers compiled by International Data Corp.

The Framingham, Mass., research firm said that global server revenues for the fourth quarter were $12.3 billion, which marks a jump from the previous quarter, but a 5.2 percent drop from the same period in 2001.

However, the entry-level market—servers priced at less than $100,000—saw revenues jump 18 percent from the third quarter, and 14 percent over the fourth quarter in 2001.

"The strong sequential growth is a sign of assurance that the server market will return to more normal seasonal predictability later this year," IDC analyst Jean Bozman said in a prepared statement. "As customers demand richer technology configurations at lower price points, the entry market will continue to lead market growth as vendors focus on entry products to meet those demands."

For the entire year, server revenue in 2002 was $44.3 billion, an 11.6 percent drop from 2001, the report said.

According to the survey, IBM, of Armonk, N.Y., continued to lead the pack with 29.4 percent market share in 2002. That was followed by Hewlett-Packard Co., of Palo Alto, Calif., with 23.8 percent market share; Santa Clara, Calif.-based Sun Microsystems Inc., with 13.6 percent; and Dell Computer Corp., of Round Rock, Texas, with 6.2 percent share. Fujitsu Ltd., of Tokyo, garnered a 3.5 percent share. That ranking held true for the fourth quarter as well, according to IDC.

Had HPs numbers been combined with those of Compaq Computer Corp. in 2002, HP would have had a 27.8 percent share, the research firm said. HP bought Compaq in May 2002.

In the Unix market, Sun led the market with a 32 percent share; HP followed closely behind, with 30 percent. However, with the Compaq numbers added in, HP would have tied Sun for number one in 2002, IDC said. IBM and HP tied for the top Unix position in the fourth quarter, with each garnering 30 percent of the market.

The Linux server space jumped 41 percent in the fourth quarter, fueled by the top vendors offering more compelling products, IDC said.

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