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Technology Stocks : All About Sun Microsystems

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To: uu who wrote (37)1/7/1997 6:30:00 PM
From: Surendra Gade   of 64865
 
Unix market swells in 1996 but NT nips at growth rate

Date: 29-12-96
Source: InfoWorld
Subject: Unix market swells in 1996 but NT nips at growth rate

While the Unix systems market grew 12 percent in 1996, it failed to reach a
projected growth rate of 14.7 percent due to increased competition from
Windows NT and Intel processor-based desktop and server machines, according
to year-end research from International Data Corp. (IDC).

Sales of traditional Unix workstations will continue to slow over the next
few years as NT begins its ascent to the most widely used platform by the
year 2000, according to the report. Unix RISC workstation sales fell from
$12.1 billion in 1995 to $11.4 billion in 1996. The main reason for this
decline is that "Intel-based systems running the NT Workstation operating
system are beginning to take on tasks formerly handled by low-end Unix RISC
workstations," according to the report.

However, despite strong growth in NT server sales, Unix server sales
continued to grow at rates of 22 to 34 percent in 1996. Small-scale Unix
server (under $100,000) revenues grew 22 percent from $9.1 billion in 1995
to $11.1 billion this year, while midrange system ($100,000 to $999,000)
revenues grew 34 percent to $9 billion. Steady growth in the
low-to-midrange Unix server market was due to continued strong use of Unix
servers as platforms for relational database engines, according to IDC.
Large-scale Unix server ($1 million and up) revenue grew 5 percent in 1996.

In 1997, low-end Unix server sales will slow due to competition from
NT-based servers, however.

Many corporations will install a majority of NT servers and workstations
over the next three years, but will also continue to purchase Unix systems
until Microsoft addresses such issues as clustering, scalability
compatibility and support for high-speed graphics, according to IDC. The
major switch to NT in lieu of Unix should begin to happen in 1998 when
Microsoft releases its Wolfpack clustering software, according to the
report.

One way Unix system vendors will differentiate their machines from NT-based
ones is by offering high-speed 64-bit computers aimed at boosting database
performance by allowing servers to process data directly in memory instead
of fetching it from disk, according to the report. One example of this
tactic is Silicon Graphics Inc.'s O2 line of desktop workstations, which
start at around $6,000 and are 10 times faster than the company's old Indy
line of machines.

Overall, if Unix vendors can convince users that their workstations and
servers fill a role that NT can't, the Unix market will continue to grow,
according to the report. However, the Microsoft-Intel partnership will
undoubtedly dampen many company's sales.

International Data Corp. in Framingham, Mass., is at
idcresearch.com. IDC is owned by IDG, the parent company of
InfoWorld Electric.
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