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Technology Stocks : How high will Microsoft fly?
MSFT 490.06+0.7%3:59 PM EST

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To: DiViT who wrote (56433)3/2/2001 12:08:43 PM
From: Joseph Pareti   of 74651
 
good news for our teddy bears friends ---

"The strong are getting stronger," said Dan Kusnetzky, vice president of IDC's
Operating Environments research. "In what could have easily been a tough year
for Microsoft because of its transition to Windows 2000, the company managed
to increase its position in both the client and the server operating
environments market."

IDC: MICROSOFT STRENGTHENS ITS GRIP 03.02.01
COMMERCIAL NEWS HPCwire
==============================================================================

Framingham, MA -- Microsoft's battle with the Justice Department has not in
any way weakened its grip in the client operating environment market or its
leading position in the server operating environment market. In fact, during
2000, Windows strengthened its hold on both the desktop and server. According
to IDC, Windows accounted for 41% of server operating environment (SOE)
shipments and an overwhelming 92% of shipments for the client operating
environment (COE).

"The strong are getting stronger," said Dan Kusnetzky, vice president of IDC's
Operating Environments research. "In what could have easily been a tough year
for Microsoft because of its transition to Windows 2000, the company managed
to increase its position in both the client and the server operating
environments market."

Not only did Microsoft increase its SOE shipments, it increased them at a rate
significantly faster than the overall market. According to IDC, Microsoft's
SOE shipments jumped 20% in 2000 while the overall market's growth was less
than 13%. With 24% growth, Linux was the only other category of operating
environment to increase its shipments faster than Microsoft - or to increase
its shipments at all. Sun was the only bright spot in the Unix market.

On the desktop, the story was one of slowing growth, but enormous dominance by
Microsoft. Only Windows and Linux increased their shipments. Windows 98/98 SE
shipments were 36% more than the prior year, while Windows 95 shipments fell
off dramatically. Linux remains a bit player with less than 2% market share,
although growth was up by 25%. Overall, Microsoft's Windows 9x and Me
operating environment shipments were only up by 8%, yet the company increased
its market share by almost 3 percentage points.

"The general trend for client operating environments continues to be
consolidation around 32-bit operating systems and applications," Kusnetzky
said. "Unfortunately for competitors of Microsoft, this consolidation also
means a general movement to Windows platforms."

Linux, though, continues to garner backing from some big guns in the IT
industry, helping to drive its growth. IBM, Hewlett-Packard, and Dell are all
shipping workstations and low-end servers with the Linux operating
environment.

"Critics and nonbelievers can no longer dismiss the Linux market as a fad,"
said Al Gillen, research manager for IDC's Operating Environments program. "If
leading hardware vendors are willing to risk their credibility by endorsing
and placing Linux systems in the market, it's easy for customers to conclude
there must be something real about Linux."

IDC recently published Server Operating Environments: 2000 Year in Review (IDC
##B23731) and Client Operating Environments: 2000 Year in Review (IDC
##B23849). The bulletins discuss trends in the server and client operating
environment markets during 2000. Shipments are compared by vendor and platform
for 1999 and 2000. The bulletins also discuss trends likely to affect the
market in 2001.

To purchase either bulletin, contact Cheryl Toffel at 1-800-343-4952,
extension 4389, or at ctoffel@idc.com.

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.

Web site: idc.com

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[ ] 530) DataDirect Networks [ ] 947) Etnus / TotalView
[ ] 529) Linux NetworX [ ] 929) Essential
[ ] 528) API NetWorks [ ] 921) SGI
[ ] 526) GENROCO [ ] 934) Hewlett-Packard
[ ] 527) Intel [ ] 949) Visual Numerics
[ ] 525) Honeywell [ ] 930) NEC
[ ] 948) Cray Inc. [ ] 902) IBM Corp.
[ ] 909) Fujitsu [ ] 932) Portland Group
[ ] 937) Compaq [ ] 945) NAG
[ ] 946) Quadrics [ ] 942) Sun Microsystems

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