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GartnerGroup's Dataquest Reports U.S. Server
Market Declined 4.3 Percent in the Fourth
Quarter; Dataquest Predicts 99 Conference to
Examine Future of the Server Industry
Source: Business Wire
SAN JOSE, CALIF. (Feb. 24) BUSINESS WIRE -Feb. 24, 1999--The U.S. server
market experienced mixed results as revenue dropped 4.3 percent in the
fourth quarter of 1998, while U.S. server shipments grew 15.9 percent
over the fourth quarter of last year, according to Dataquest Inc., a
unit of Gartner Group, Inc. (NYSE:IT).
The decrease in revenue is due to falling prices resulting in U.S.
server revenue of $4.4 billion in the fourth quarter of 1998, down from
$4.6 billion in the fourth quarter of 1997. Shipments reached 306,000
units.
"Entry level server unit growth was greater than 19 percent, but
revenues remained flat, as technology differentiation in this segment
has all but disappeared and logistics execution has become more
important," said Angela Dehzad, analyst for Dataquest's Servers
Quarterly Statistics United States program.
IBM held onto the No. 1 position in the fourth quarter despite flat
growth over last year. Compaq had low growth of 4.6 percent, but
remained in the No. 2 position. Three of the top five vendors showed
very positive year-over-year growth, with Dell growing an astounding
95.3 percent (see Table 1).
Table 1
U. S. Server Revenue Estimates for Fourth Quarter 1998
(Millions of Dollars)
Company Q4/97 Q4/97 Market Q4/98 Q4/98 Market Growth (%)
Revenue Share (%) Revenue Share (%)
IBM 1,346 29.1 1,351 30.5 0.3
Compaq 711 15.4 744 16.8 4.6
Hewlett-Packard 580 12.5 685 15.4 17.9
Sun Microsystems 476 10.3 572 12.9 20.3
Dell 128 2.8 250 5.6 95.3
Others 1,389 30.0 832 18.8 -40.1
Total 4,631 100.0 4,433 100.0 -4.3
Source: Dataquest (December 1998)
"The U.S. server market is continuing to consolidate and we expect in
1999 more vendors will change their business model focus from hardware
to services and more efficient distribution models," said Kimball
Brown, vice president and chief analyst for Dataquest's Servers
Quarterly Statistics program.
Brown will provide additional analysis on the server industry during
the upcoming GartnerGroup's Dataquest Predicts 99 Conference to be held
March 22-24 at the San Diego Hyatt. Dataquest analysts will provide
their outlook for the server market, as well as other sectors of the
high-technology industry.
GartnerGroup's Spring Symposium/ITxpo 99 will be held concurrently at
the San Diego Convention Center. Members of the press can register for
the conference by contacting Josh Lefkowitz at 212/696-2000, or at
jlefkowitz@tsipr.com. A complete agenda of the event is available on
the GartnerGroup Web site at gartner.com.
Additional information on the server market is available in Dataquest's
Servers Quarterly Statistics United States program. This program
publishes quarterly data on the U.S. server industry. This program
covers various segments of the server industry, including system
platforms, server classes and server types. Detailed information on
this program is available on Dataquest's Web site at
gartner.com.
To subscribe to this program, 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.
GartnerGroup'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.
As the world's leading authority on IT, GartnerGroup provides clients
with a wide range of products and services in the areas of IT advisory
services, measurement, research, decision support, analysis, and
consulting. Founded in 1979, with headquarters in Stamford, Conn.,
GartnerGroup is at the center of a global community serving Fortune
1000 clients from 80 locations worldwide. Additional information about
the company is available on the Internet at gartner.com.
-0- ao/sf* dl/sf
CONTACT: Dataquest
Christy Pettey, 408/468-8312
christy.pettey@gartner.com
KEYWORD: CALIFORNIA CONNECTICUT
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TRADESHOW Today's News
On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
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