Australia adds to record server sale revenues 13:41 Thursday 2 March 2000 By BARRY PARK AUSTRALIA'S double-digit growth in server sales has helped drive the Asia-Pacific region to record revenues in 1999, an IDC study revealed today.
IDC said Australia made up one of the top five markets for servers in the Asia-Pacific region, with Unix-based high-end servers deployed in Internet and business intelligence environments earning the most dividends from expanding sales.
The Asia-Pacific server market - which excludes Japan - surged past the US$4 billion mark for the first time in 1999.
IDC said server revenues increased 36 per cent in 1999 to reach US$4.67 billion, compared to the previous record of US$3.9 billion in 1997.
It said market expansion was fuelled by "sustained economic recovery across the region, increased spending on Internet-related applications, and Y2K-driven spending that continued well into the fourth quarter".
PC servers and smaller entry level servers provided the greatest accelerators in 1999, with annual growth rates of 68 per cent and 34 per cent, respectively.
High-end servers priced at more than US$1 million grew marginally with a 3 per cent annual revenue increase, held back by a Y2K-related slowdown, IDC said.
Companies selling servers in the Asia-Pacific region lost more market space to the big five during 1999, with IBM, Hewlett-Packard, Compaq, Sun Microsystems and Dell now holding 83 per cent of the market, up from 80 per cent in 1998.
IBM's RS/6000 and PC server sales helped the company retain the number one position in the region despite a sharp Y2K-related downturn in demand for its proprietary platforms.
The number two-placed Hewlett-Packard was helped by a 99 per cent growth in its high-end server division, and 59 per cent growth in the PC server arena, to increase its market share by by 36 per cent.
Compaq's server business grew faster than the overall market on the back of strong demand for high-performance Tandem servers and an improved focus on its Alpha servers.
Compaq's third ranking is being challenged by Sun, which grew rapidly during 1999 on its its aggressive marketing and strong mindshare in the Internet space.
Dell entered the top five list for the first time this year, posting a 200 per cent increase in revenues compared to 1998, mainly based on its growth in the Australian and Chinese markets.
New Zealand was the only market in the region to fall short of double digit growth, IDC said.
The company said despite a Y2K-related slowdown in the second half of 1999, server revenues grew 16 per cent in Australia in 1999 over 1998. |