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To: Road Walker who wrote (107268)8/10/2000 12:08:16 PM
From: Tony Viola  Read Replies (1) of 186894
 
John, Intel investors, article from Gartner's Dataquest about server sales. Looks like good news for Dell in there, +36.2% YOY, hopefully helped them make their quarter, report today after the close. Sun not too shabby either, to say the least, JDN and other Sun investors.

CPQ reported +40% improvement in revenues Q over Q in their industry standard servers group, not sure why that isn't duplicated here. Could be because the data in this report is in shipments, vs. revenues, and they sell more of the 4 and 8 ways, by far than Dell ,IBM and HP.

Go to the URL to read the tables, as they don't line up in the SI post and
, etc. is too much work!

The market is also receiving a boost by strong sales in low-end servers (systems less than $25,000)

These are undoubtedly almost all Intel based.

Tony

gartner6.gartnerweb.com

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tom.mccall@gartner.com

Gartner's Dataquest Says Worldwide Server and Workstation Markets Experience Double-Digit Growth in Second Quarter 2000
San Jose, Calif., August 2, 2000 — The worldwide server and workstation industries posted double-digit growth rates in the second quarter of 2000, with increases of 11 percent and 14 percent, respectively, according to preliminary statistics by Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). Worldwide server shipments reached 955,412 units in the second quarter, and workstation shipments totaled 440,463 units.

While the server market experienced double-digit growth, it is below the projected growth of 21 percent for 2000. The market did show a stronger increase than in the first quarter, and Dataquest analysts said this indicates some acceleration in the market because of the recovery from year 2000 issues. The market is also receiving a boost by strong sales in low-end servers (systems less than $25,000).

"The server industry's growth in the second quarter was primarily fueled by e-business, which created a strong demand for front-end Web servers. These servers are on the lower end of the price scale," said Jeffrey Hewitt, principal analyst for Dataquest's Servers Worldwide program.

Sun Microsystems and Dell showed the best growth among the top-tier vendors in the second quarter (see Table 1). Both companies attribute their robust growth to their success in the low-end server market.

Table 1
Preliminary Worldwide Server Unit Shipment Estimates for 2Q00 (Units)

Company 2Q00 Market Share (%) 2Q00 Market Share (%) 2Q99 Shipments 2Q99 Market Share (%) Growth (%)
Compaq 280,385 29.3 243,212 28.3 15.3
Dell 135,000 14.1 99,152 11.5 36.2
IBM 131,151 13.7 157,797 18.3 -16.9
Hewlett-Packard 113,832 11.9 106,177 12.3 7.2
Sun Microsystems 75,000 7.9 43,995 5.1 70.5
Others 220,044 23.0 210,027 24.4 4.8
Total Market 955,412 100.0 860,360 100.0 11.0
Source: Dataquest (August 2000)
Driven by the sales of entry-level workstations, second quarter workstation shipments were ahead of the year-end growth projection of 8.5 percent. Dataquest analysts said the second quarter increase is the result of the "bleeding" in of sales to the PC market, and thus it represents a somewhat artificial workstation growth rate.

"Differentiation of high-end PCs and entry-level workstations is getting increasingly blurred," said Pia Rieppo, principal analyst for Dataquest's Workstations Worldwide program. "Many of the entry-level workstations being shipped in the second quarter this year are getting sold for PC uses as opposed for traditional workstation uses in design and analysis by technical and creative professionals."

Strong sales in entry-level workstations helped Dell move past Sun Microsystems and Hewlett-Packard to become the No.1 vendor in terms of workstation units shipped, as it accounted for 23 percent of shipments in the second quarter of 2000 (see Table 2).

Table 2
Preliminary Worldwide Workstation Unit Shipment Estimates for 2Q00 (Units)

Company 2Q00 Market Share (%) 2Q00 Market Share (%) 2Q99 Shipments 2Q99 Market Share (%) Growth (%)
Dell 100,000 22.7 56,585 14.7 76.7
Hewlett-Packard 90,275 20.5 81,197 21.0 11.2
Sun Microsystems 85,000 19.3 88,327 22.9 -3.8
Compaq 64,000 14.5 52,350 13.6 22.3
IBM 40,250 9.1 60,468 15.7 -33.4
Others 60,938 13.8 46,993 12.2 29.7
Total Market 440,463 100.0 385,920 100.0 14.1
Source: Dataquest (August 2000)

These results are preliminary at this time. Final statistics will be available soon to clients of Dataquest's Servers Quarterly Statistics program and Dataquest's Workstations Quarterly Statistics Worldwide program. These programs offer a comprehensive, global market information service that analyzes and documents the server and workstation industries.

To subscribe to these programs, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at dataquest.com.

Gartner's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

About Gartner
Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit, Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 1999 revenues of $734 million. Gartner's 3,600 associates, including 1,200 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at gartner.com.

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